ICANManagement InformationInformation Systems in Business2024

A Decision Support System (DSS) used by the board of Enugu Cement Plc presents three pricing scenarios for a new product. Scenario A yields a contribution of ₦45,000,000, Scenario B yields ₦62,000,000 and Scenario C yields ₦38,000,000, each with fixed overheads of ₦25,000,000. Which statement BEST describes the primary role of the DSS in this context?

AThe DSS makes the pricing decision on behalf of management by selecting Scenario B
BThe DSS processes and presents structured scenario analysis to support, but not replace, management judgment in selecting the optimal pricing strategyCORRECT
CThe DSS records the financial outcomes of each scenario in the general ledger for audit purposes
DThe DSS automatically implements Scenario B and notifies the sales team of the new price
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Why the answer is B, and why the others tempt you.
A Decision Support System is designed to assist managers by processing data and presenting analytical outputs such as scenario comparisons, but the final decision remains with management. Scenario B yields the highest profit of ₦37,000,000 (₦62,000,000 − ₦25,000,000), but the DSS presents this information rather than making or implementing the decision. Recording transactions is the role of a TPS, and automatic implementation goes beyond the scope of a DSS.
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