Write short note on Digital Technology for the analysis of economic activity

A Management Information System ICT Revision Questions and Answers

Answer

Various types of computer aided tools and information system can be incorporated together for the analysis of different types of financial activity, which are applicable to almost all functional departments of an enterprises. Moreover they can capture the pertinent data and dissipate to relevant person and department for the purpose of analysis to generate the constructive report. Digital technology can be used in following cases for the analysis of economical activity.
• Financial planning
• Ratio analysis: Profitability ration, liquidity ratio, efficiency ratio
While doing these things the generalize formulate can be programmed and they can be used whenever needed by entering the numerical values. For example the analysis can be done for each year, 5-10 years projections etc.



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