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ACCA Applied Knowledge · Business and Technology · Financial systems and technology

Which of the following is a characteristic of an unstructured decision, for which a decision support system is typically most useful?

An unstructured decision has no agreed method of solution and depends on managerial judgement and insight. Decision support systems help here by letting managers model alternatives and test assumptions. Decisions that follow fixed procedures or recur daily under set rules are structured and can usually be automated.

  1. AIt follows a fixed procedure that can be programmed in advance
  2. BIt has no agreed method of solution and relies on managerial judgement and insightCorrect
  3. CIt recurs daily and is made by operational staff using set rules

Explanation

Unstructured decisions are novel and non-routine with no established procedure, so judgement is needed, and DSS tools help by modelling options. Fixed procedures and daily rule-based decisions are structured decisions, which can be automated.

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