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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 Expert system
system (EIS) (DSS)

 For senior executives  Aids management  Hold specialist
decisions knowledge, e.g. law,
 User friendly internal
and external information  System predicts taxation
possible consequences  Non-experts can utilise
 Option to ‘drill’ down to
obtain detail of possible scenarios for advice and
 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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