A company needs information on which to base decisions concerning the current operations and future plans. Explain areas of management control where computers are used or can be used.

CPA-Quantitative-Analysis-Section-4 BLOCK RELEASE

Management control
This refers to the activity of monitoring how effectively resources are used and how well operational units are performing.

Areas of management control where computers are used/can be used:
1. At the operational level where transaction processing systems (computerized systems that perform and record the daily routine transactions necessary to conduct the business) could be used to coordinate accounts receivable.
2. At the knowledge level where office systems (systems that automate office procedures) and knowledge work systems (systems that aid knowledge workers to create new information and knowledge) may be used for electronic scheduling of events and product design.
3. At the management level where management information systems (MISs- information systems at the management level of an organization that secure the functions of planning, controlling and decision making providing routine summary and exception reports) could be used for budget preparation and in identifying production cost overruns. Also
Decision support systems (information systems at the organization‘s management level that combine data and sophisticated analytical models or data analysis tools to support non- routine decision making) could be used in supporting non-routine decisions such as identifying production facility locations for a manufacturing company.
4. At the strategic level where executive support systems (information systems at the organization‘s strategic level designed to address unstructured decision making through advanced graphics and communications) to support senior managers in making decisions concerning new products and new markets.

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