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Chapter 5
Developing management accounting
systems
A management information system (MIS) converts internal and
external data into useful information which is then communicated to
managers at all levels/functions to enable them to make timely and
effective decisions for planning, directing and controlling activities.
2.1 Key types of MIS
Executive information Decision support system
system (EIS) (DSS) Expert system
For senior executives. Aids management Hold specialist
decisions. knowledge, e.g. law,
User friendly internal
and external System predicts taxation.
information. possible consequences Non-experts can utilise
of possible scenarios. for advice and
Option to ‘drill’ down to
obtain detail. Managers then use assistance in decision
judgement to make making.
decisions.
Illustrations and further practice
Now try TYU question 3 from Chapter 5 of the Study Text.
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