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

Which of the following managerial decisions is most likely to be supported by an executive information system (EIS) rather than by a standard MIS report?

An executive information system suits senior managers assessing long-term strategic position, because it combines internal performance indicators with external market data in summarised form and allows drill-down. Inventory reorder checks and overdue payables reviews are structured operational tasks, handled by routine reports rather than an EIS.

  1. AChecking whether the daily inventory reorder level has been reached for a product line
  2. BReviewing the monthly payables ledger for overdue supplier invoices
  3. CAssessing the company's long-term strategic position using key performance indicators, external market trends and drill-down into trendsCorrect

Explanation

An EIS serves senior management with strategic, largely unstructured needs, combining internal and external data in a highly summarised, graphical form with drill-down. Reorder checks and overdue invoice reviews are structured, operational tasks served by routine MIS or transaction reports.

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