Chapter 8—General Ledger, Financial Reporting, and Management Reporting Systems TRUE/FLSE 1. 2. 3. . ". &.
The most most common common means of making making entries entries in the general general ledger ledger is via via the journal journal voucher. voucher. T Individual Individuals s with access access authority authority to general general ledger accounts accounts should should not prepare prepare journal journal vouchers vouchers T The journal journal voucher voucher is the document document that authorize authorizes s entries entries to be made to the general ledger. ledger. T !ach account account in the the chart of accounts accounts has has a separate separate record in the the general general ledger master master file. file. T The responsibi responsibility lity center center file file is primarily primarily used by the #inancial #inancial $eportin $eporting g %ystem. %ystem. # 'anagement reporting reporting is often called called discretionary discretionary reporting because it is not mandated as is financial financial reporting. T (. )rimary )rimary recipients recipients of financi financial al statement statement informat information ion are internal internal management management.. # *. The 'anag anagem eme ent $epor eportting ing %yste stem is is a nond nondiiscre screti tion onar ary y syst system em.. # +. ,hen ,hen eva evalu luat atin ing g decis decisio ion n alte altern rnat ativ ives es-- one one opti option on is is to tak take e no acti action. on. T 1. In most cases cases intangi intangible ble decision decision criter criteria ia can be /uanti /uantified. fied. # 11. 11. 0ne benefit of the 'anagement 'anagement $eporting $eporting %ystem is that it can alert management management to delays delays in project project implementation. T 12. 12. $esp $espon onsi sibi bili lity ty ref refer ers s to an an indi indivi vidu dual als s obli obliga gati tion on to to achi achiev eve e desi desire red d resu result lts. s. T 13. firm firm with with a wide wide span span of of contr control ol tend tends s to have have relati relativel vely y more more laye layers rs of of manag manageme ement. nt. # 1. The control function entails entails evaluating evaluating a process against a standard and- if necessary- taking corrective action. T 1". 1". %tanda andard rds s ar are the the basi asis for for eval evalua uati ting ng actu ctual per perfor formanc mance. e. T 1&. report is said to have have information content if itit eliminates eliminates uncertainty associated with with a problem problem facing the decision maker. # 1(. 1(. n inve invent ntor ory y out outo of fst stoc ock k rep repor ortt is is an an e4a e4amp mple le of a pro progr gram amme medd- ond ondem eman and d repo report rt.. T 1*. principle of responsibility responsibility accounting accounting is that managers managers are responsible responsible for controllable and uncontrollable co costs. # 1+. 1+. The The mana manage gerr of of a cos costt cent center er is is resp respon onsi sibl ble e for for cos costt con contr trol ol and and rev reven enue ue gen gener erat atio ion. n. # 2. 5esigning 5esigning an effectiv effective e management management reporting reporting system system does not re/uire re/uire an understandi understanding ng of the informati information on managers managers need to deal deal with the the problems problems they face. face. # 21. The formal formaliza izatio tion n of of task tasks s principle suggests that management should structure the firm around the uni/ uni/ue ue ski skills sets ets of of key key indi indivi vidu dual als. s. # 22. If a manager delegates delegates responsi responsibili bility ty to a subordinatesubordinate- he or she must also also grant the subordinat subordinate e authority to ma make de decisions. T 23. 0perational control involves involves motivating motivating managers managers at all levels to use resources- including including materialsmaterialspers person onne nell- and and fina financ ncia iall asse assets ts-- as as prod produc ucti tive vely ly as pos possi sibl ble. e. # 2. The block block code code is the coding coding scheme scheme most most appr appropr opriat iate e for for a chart chart of of accou accounts nts.. T MULT!"LE C#$!CE 1. The coding coding scheme scheme most most appropr appropriate iate for for a chart chart of accoun accounts ts is a. se/u se/uen enti tial al code code %& %loc' co code c. group code d. mnem mnemon oniic code code 2. comm common on use use for se/u se/uent ential ial coding coding is a. creati creating ng the chart chart of accoun accounts ts b. identi identifyi fying ng invent inventory ory items items c& iden identi ti(y (yin ing g doc) doc)me ment nts s d. iden identi tify fyin ing g fi4e fi4ed d asset assets s 3. The most most import important ant advantag advantage e of se/uenti se/uential al coding coding is that that a& missing missing or )nrecord )nrecorded ed doc)men doc)ments ts can %e identi identi(ied (ied b. the code code itself itself lacks lacks infor informat matio ional nal conte content nt c. item items s can canno nott be be ins inser erte ted d d. deleti deletions ons affec affectt the the se/uen se/uence ce
. ,hen a firm wants wants its coding coding system to convey convey meaning meaning without without reference reference to any other documentdocument- it would choose a. an alph alphab abet etic ic code code %& a mn mnemon emonic ic code code c. a group code d. a block ock code ". The most most import important ant advantag advantage e of an alphabet alphabetic ic code is that that a. meanin meaning g is read readil ily y conve conveyed yed to user users s b. sort sortin ing g is is sim simpl plif ifie ied d c& the capacity capacity to represent represent items is increa increased sed d. missin missing g docume documents nts can can be be identi identifie fied d &. !ntries !ntries into into the 6eneral 6eneral 7edger %ystem %ystem 867%9 867%9 can can be made using using informati information on from a. the the gene genera rall jou journ rnal al b. a journal journal voucher voucher which which represent represents s a summary summary of similar similar trans transactio actions ns c. a journal journal voucher voucher which which represe represents nts a singlesingle- unusua unusuall transacti transaction on d& all all o( o( the the a%o* a%o*e e (. ,hich ,hich statement statement is not not correct: correct: The The general general ledger ledger master master file file a. is based based on on the the firm firms s chart chart of of accoun accountt b. contai contains ns a reco record rd for for contr control ol accou accounts nts c& is an o)tp o)tp)t )t o( the the Financ Financial ial Repor Reporting ting System System +FRS +FRS d. supplies supplies inform information ation for manage management ment decision decision making making *. ,hat type type of data is is found in the general general ledger ledger master master file: file: a. a chrono chronolog logica icall record record of all all transa transacti ctions ons %& the %alan %alance ce o( each each acco)n acco)ntt in the the chart chart o( acco)nts acco)nts c. budget records records for for each each account account in the the chart chart of account accounts s d. subsidiary subsidiary details details suppor supporting ting a control control account account +. ,hich ,hich report is is not an output output of the the #inancial #inancial $eporti $eporting ng %ystem %ystem 8#$%9: 8#$%9: a& *ari *arian ance ce anal analys ysis is repo report rt b. stat statem emen entt of of cas cash h flow flows s c. ta4 return d. comp compar arat ativ ive e balan balance ce shee sheett 1. ,hich ,hich steps in the #inanci #inancial al ccoun ccounting ting )rocess )rocess are are in the correct correct se/uence: se/uence: a. record record the transaction transaction-- post to the ledgerledger- prepare prepare the adjusted adjusted trial balance balance-- enter adjusting entries- prepare financial statements b. record record the transaction transaction-- prepare prepare the unadjusted unadjusted trial trial balancebalance- record record adjusting adjusting journal journal entries- record closing entries- p repare financial statements c. record record the transaction transaction-- post to the ledgerledger- record record adjusting adjusting entriesentries- prepare prepare the unadjusted unadjusted trial balance- prepare financial statements d& record the the transaction, transaction, post to the ledger, ledger, prepare prepare the ad-)sted ad-)sted trial trial %alance, %alance, prepare (inancial statements, record closing entries 11. 11. ,hich ,hich state statemen mentt is not not correc correct: t: a. the postclo postclosing sing trial trial balance balance reports reports the ending ending balance balance of each account account in the general general ledger b. one purpose purpose of preparing preparing the the unadjusted unadjusted trial trial balance balance is to ensure that that debits debits e/ual credits credits c& (inancia (inanciall statements statements are prepare prepared d %ased on the the )nad-)ste )nad-)sted d trial %alance %alance d. the unadjusted unadjusted trial trial balance balance reports control control account account balances balances but omits omits subsidiary subsidiary ledger ledger detail 12. ,hat account account appears appears on the postcl postclosing osing trial balance: balance: a. incom ncome e sum summa marry %& machinery c. rent e4pen pense
d. inte intere rest st inco income me 13. #inancial #inancial statements statements are prepared prepared from from the a. trial rial bal balanc ance %& ad-) ad-)st sted ed tri trial al %al %alan ance ce c. gener eneral al ledge edger r d. gene genera rall jour journa nall 1. $isk e4posures e4posures in the 6eneral 6eneral 7edger 7edger and #inancial #inancial $eport $eporting ing %ystems %ystems include include all of the following following e4cept a. loss loss of the the aud audit it trai traill b. unauth unauthori orized zed acces access s to the gener general al ledge ledger r c& loss loss o( o( phy physi sica call asse assets ts d. general general ledger ledger account account out out of balance balance with with the the subsidiary subsidiary account account 1". ,hich situation situation indicates indicates an internal internal control control risk in the 6eneral 7edger;#inancial 7edger;#inancial $eporting %ystems 867;#$%9: a. the employee employee who who maintains maintains the the cash journal journal comput computes es depreciat depreciation ion e4pense e4pense b. the cash cash receipts receipts journal journal voucher voucher is approv approved ed by the the Treasur Treasurer er c. the cash cash receipts receipts journal journal voucher vouchers s are prenumbe prenumbered red and stored stored in a locked locked safe safe d& the employee employee .ho .ho maintains maintains the the cash receipts -o)rnal -o)rnal records transactions in the the acco)nts recei*a%le s)%sidiary ledger 1&. ,ith a limited limited work force and a desire to maintain strong strong internal control- which which combination of duties performed by a single individual presents the least risk e4posure: a. maintaini maintaining ng the inventory inventory ledger and and recording recording the inventory inventory journal journal voucher voucher in the general ledger b. recording recording the invent inventory ory journal journal voucher voucher in the general general ledger ledger and maintain maintaining ing custody custody of inventory c& maintaining maintaining the cash dis%)rsements dis%)rsements -o)rnal and recording recording direct la%or costs costs applied applied to speci(ic -o%s d. preparing preparing the the accounts accounts payable payable journal journal voucher voucher and recording recording it in the the general general ledger 1(. The audit audit trail trail fulfill fulfills s all of the the following following purpose purposes s e4cept e4cept a. provi provides des the the ability ability to to answer answer in/uir in/uiries ies %& ens)res ens)res the the acc)racy acc)racy o( o( the appl applicati ication on so(t.a so(t.are re c. fulfil fulfills ls gove governm rnment ental al regu regulat lation ions s d. offers offers a means means for preventing preventing-- detectingdetecting- and correct correcting ing errors errors 1*. ,hich ,hich best describes describes a batch batch process process 6enera 6enerall 7edger %yste %ystem m 867%9 867%9 a. paper paper docume documents nts are elimin eliminate ated d b. the general general ledger ledger master master file is update updated d each each night night c& there is a time lag %et.een transaction transaction processing and posting posting to the general ledger d. no direct direct access access or /uerying /uerying of the 6eneral 6eneral 7edger is possible possible 1+. n advantag advantage e of a batch batch 6eneral 6eneral 7edger %ystem %ystem 867%9 867%9 is is that a. separation separation between between authoriz authorization ation and transact transaction ion processing processing is strictl strictly y enforced enforced b. the general general ledger ledger master master file is is recreated recreated with each update update c& )pdates and reconciliation reconciliation o( transactions transactions occ)r as as a step .ithin the transaction transaction cycle d. errors errors and outofb outofbalanc alance e conditions conditions are are identifie identified d at the end end of the month month 2. charac characteris teristic tic of the the 'anagemen 'anagementt $eporting $eporting %ystem %ystem 8'$%9 8'$%9 is a. the '$% operat operates es in conformit conformity y with generall generally y accepted accepted accounting accounting princip principles les b. it is a legal legal re/uirem re/uirement ent that that the '$% '$% be installe installed d and functioni functioning ng properly properly c. the '$% '$% is is developed developed by implem implementing enting %!< re/uiremen re/uirements ts d& the MRS MRS (oc)ses (oc)ses on intern internal al decision decisionma' ma'ing ing in(orm in(ormatio ation n 21. ,hich ,hich statem statement ent is not true: true:
a& a)thority re(ers to an indi*id)al0s indi*id)al0s o%ligation o%ligation to to achie*e achie*e desired desired res)lts res)lts b. if an employee employee is given given the responsibi responsibility lity for for a task- that that employee employee should should be given authority to make decisions within the limits of that task c. the level level of detail detail provided provided to an employee employee is a function function of the employee employees s position position with with the firm d. all all of of the the abov above e are are tru true e 22. ,hich ,hich statement statement is is not true: true: The The managers managers span of control control a& is narro narro. . (or (or ro)tin ro)tine e and repetiti repetiti*e *e tas's tas's b. is relat related ed to the number number of layers layers of management management c. affects affects the the amount amount of detail detail provided provided to to a manager manager d. can affec affectt employ employee ee morale morale and and motiva motivatio tion n 23. %hort %hortran range ge plan plannin ning g invol involves ves a. settin setting g goals goals and and object objective ives s of the the firm firm %& plannin planning g the prod prod)cti )ction on sched)l sched)le e (or the the ne1t 2)arte 2)arter r c. planni planning ng the the grow growth th of the firm firm d. deciding deciding on the the degree degree of diversifi diversificati cation on among the the firms firms products products 2. 7ongr 7ongrang ange e plan plannin ning g invo involve lves s a. planning planning the the market marketing ing and and promot promotion ion for for a product product b. presenting presenting department department heads with budgeta budgetary ry goals goals for the ne4t ne4t year c. preparing preparing a work work force force utilizat utilization ion budget budget for for the ne4t ne4t /uarter /uarter d& decid deciding ing the the optim optim)m )m si3e si3e o( the the (irm (irm 2". The level level of manageme management nt that makes makes tactica tacticall planning planning decisio decisions ns is a. top manag anagem emen entt %& midd middle le mana manage geme ment nt c. oper operat atio ions ns mana manage geme ment nt d. fron front tli line ne manag managem emen entt 2&. The decisi decision on to enter enter a new market market is an e4ample e4ample of a& stra strate tegi gic c plan planni ning ng b. tact tactic ical al pla plann nnin ing g c. mana manage geme ment nt cont contro roll d. oper operat atio iona nall cont contro roll 2(. ll of the the following following are element elements s of operational operational contro controll decisions decisions e4cept e4cept a& determ determini ining ng the the scop scope e o( the the acti*i acti*ity ty b. settin setting g operat operating ing standa standards rds c. eval evalua uati ting ng perf perfor orma manc nce e d. taking taking corr correct ective ive acti action on when when necessa necessary ry 2*. In contrast contrast to tactical planning decisions- management management control control decisionsdecisions- and operational operational control decisions- strategic planning decisions usually a. are are mor more focu focuse sed d b. have have a shor shorte terr tim time e fram frame e c& are are )ns )nstr tr)c )ct) t)re red d d. have have a high high degr degree ee of certai certainty nty 2+. ,hich ,hich of the following following management management principl principles es affects affects the management management reporti reporting ng system: system: a. form formal aliz izat atio ion n of of tas tasks ks b. aut author horizat izatiion c. span span of contr ontrol ol d& all all o( o( the the a%o* a%o*e e 3. ll of the the following following are are elements elements of problem problem struct structure ure e4cept e4cept a& certainty b. data
c. proce ocedures d. objectives 31. ll of the the following following are are e4amples e4amples of programme programmed d reports reports e4cept e4cept a. cash cash flow flow report reports s for for 5ivi 5ivisio sion n= %& yeartodate local income income ta1 payments payments made made %y all employees li*ing li*ing in City 4 and .or'ing in City 5 c. invent inventory ory e4cep e4ceptio tion n report reports s for 5ivis 5ivision ion 6 d. e/uipm e/uipment ent utili utilizat zation ion repor reports ts for for )lant )lant ' 32. fundam fundamental ental princi principle ple of respons responsibil ibility ity accounti accounting ng is that that a& managers managers are are acco)nt acco)nta%le a%le only only (or (or items items they they control control b. a managers managers span of of control control should should not e4ceed e4ceed eight people people c. struct structure ured d reports reports shou should ld be prepa prepared red week weekly ly d. the inform information ation flow is in in one direc directiontion- topdown topdown 33. ,hich ,hich statement statement is is not true: true: $espon $esponsibil sibility ity accounti accounting ng a. involves involves both both a topdow topdown n and bottom bottomup up flow flow of inform information ation %& ac'no.led ac'no.ledges ges that some some economic economic e*ents e*ents cannot cannot %e traced traced to any manager manager c. crea creattes a bud budge gett d. compar compares es actual actual perf perform ormanc ance e with with budget budget 3. ,hat mechanis mechanism m is used to convey convey to managers managers the standard standards s by which their their perform performance ance will will be measured: a. the the respon responsi sibi bili lity ty repo report rt b. the the sche schedu dule led d repo report rt c& the %)dget d. all all of of the the abov bove 3". ll of of the follow following ing concept concepts s encourage encourage goal goal congrue congruence nce e4cept e4cept a& detailed detailed in(orm in(ormatio ation n reportin reporting g at all manag management ement le*els le*els b. author authority ity and respon responsib sibili ility ty c. form formal aliz izat atio ion n of of tas tasks ks d. respon responsib sibili ility ty accoun accountin ting g 3&. ,hich ,hich of the the followi following ng stateme statements nts is >0T true: true: a. %orting %orting records records that are are coded alphabet alphabeticall ically y tends to be more more difficul difficultt for users users than sorting numeric se/uences. %& Mnemoni Mnemonic c coding coding re2)ire re2)ires s the )ser )ser to memori3 memori3e e codes& codes& c. %e/uentia %e/uentiall codes carry carry no inform information ation content content beyond beyond their their order order in the the se/uence. se/uence. d. 'nemonic 'nemonic codes are are limited limited in their their ability ability to represent represent items items within within a class. class. 3(. ,hich ,hich file has as its prima primary ry purpose purpose to present comparati comparative ve financial financial reports reports on a historic historic basis: basis: a. journ journal al vouche voucherr hist history ory file file b. budg budget et mas maste terr fil file e c. resp respon onsi sibi bili lity ty file file d& genera generall ledg ledger er histo history ry (ile (ile 3*. ll of the following following are are characterist characteristics ics of the strategic strategic planning planning process process e4cept the the a& emphasis emphasis on %oth the short short and and long long r)n& r)n& b. review review of the attribut attributes es and behavior behavior of the organiz organization ations s competit competition. ion. c. analys analysis is of e4te e4terna rnall econom economic ic facto factors. rs. d. analys analysis is of consum consumer er demand demand.. 3+. ,hich ,hich of the following following performance performance measures measures can not result result in dysfuncti dysfunctional onal behavior: behavior: a. pric price e var variiance ance b. /uotas c. $0I d. net in income
e& all o( o( the a%o*e a%o*e can res)lt res)lt in dys()n dys()nctio ctional nal %eha* %eha*ior ior . ,hich ,hich of the follo following wing best best describ describes es a profit profit center center?? a& a)thority to ma'e ma'e decisions decisions a((ecting the ma-or ma-or determinants determinants o( pro(it, pro(it, incl)ding incl)ding the po.er to choose its mar'ets and so)rces o( s)pply& b. authority authority to make make decisions decisions affecting affecting the major major determinan determinants ts of profitprofit- including including the power power to choose its markets and sources of supply- and significant control over the amount of invested capital. c. authority authority to make make decisions decisions over over the most signif significant icant costs costs of operation operationss- including including the the power to choose the sources of supply. d. authority authority to provid provide e specialized specialized support support to other other units withi within n the organizati organization. on. e. responsibility for combining combining the raw materialsmaterials- direct direct laborlabor- and other factors factors of production into a final product. S#$RT 6S7ER 1. #inancial ccounting )rocess.
>%? 1.
%? make entries in special journals or subsidiary ledgersA prepare journal vouchersA maintain custody of physical assets 3. !4plain !4plain the purpos purpose e and contents contents of the the general general ledger ledger master master file. file. >%? The general ledger master file is the main file on the general ledger database. It is based on the firms chart of accounts. !ach record is either a general ledger account 8e.g.- sales9 or a control account 8e.g.- the accounts payable control9 for one of the subsidiary ledgers. The general ledger master file contains the following for each account? the account number- description- account class 8e.g.- asset9the normal balance 8debit or credit9- beginning balance- total debits for period- total credits for periodand current balance. . !4plain !4plain two two types of coding coding schemes schemes and and give e4ampl e4amples es of their their use. >%? %e/uential codes represent items in some se/uential order. )renumbered checks are one e4ample. =lock codes use se/uential numbering in specific parts of the total codeBall current assets begin with C1- fi4ed asset C2- etc. Traditional Traditional charts of accounts use block codes and start assets with 1- liabilities with 2- etc. lphabetic codes are are similar to numeric numeric codes with with increased options. two character code code has potential for &(& items 82& 2&9 whereas a two digit code can accommodate only 1 81 19.
'nemonic codes use letters with meaning. The postal state abbreviations are mnemonic.
". ,hy do many many firms firms no longer longer use a general general journal journal: : ,hat has has taken its its place: place: >%? 'any firms have replaced a traditional general journal with a journal voucher system. !ach entry is documented on a prenumbered journal voucher which contains additional information- such as authorization- which enhances control. voucher may contain information on a number of related transactions. &. ,hat are the the major e4posur e4posures es in the general general ledger;fi ledger;financi nancial al reporting reporting system system: : >%? The primary e4posures are? a defective or lost audit trail- unauthorized access- 67 accounts out of balance with subsidiary ledger accounts- and incorrect account ba lances due to unauthorized or incorrect entries. (. ,hy is the the audit audit trail trail nece necessa ssary: ry: >%? The audit trail is needed for several reasons? to provide the ability to answer in/uiries from customers and suppliers- to reconstruct files if lost- to provide historical data to auditors- to satisfy government regulations- and for error control. *. The DDDDDDDDDDDD DDDDDDDDDDDDDDDDDD DDDDDDDDDDDD DDDDDDDDDDDD DDDDDDD D principle principle suggests suggests that management management should structur structure e the firm around the work it performs rather than around individuals with uni/ue skills. >%? formalization of tasks +. !mployees !mployees who who are responsib responsible le for a task must must have the DDDDDDDD DDDDDDDDDDDDDD DDDDDDDDDDDD DDDDDDDDDDDD DDDDDD to to make decisions within the limits of the responsibility delegated. >%? 1.Span 1.Span o( control refers to the number of subordinates directly under a managers control. 11. 11. The differe difference nce between between the actual actual performan performance ce and the standard standard is called called the the *ariance 12. Eow does the 'anagemen 'anagementt by !4ception !4ception principle principle affect affect the 'anageme 'anagement nt $eporting $eporting %ystem: %ystem: >%? $eports should focus focus on differences differences between actual and and e4pected numbers in key factors that are symptomatic of potential problems. $eports that provide unnecessary details about routine- in control items should be avoided. 13. #or reports reports to be useful they must have information information content. content. 5escribe 5escribe a reporting reporting objective objective which gives reports information content. >%? $eports must reduce reduce the level of uncertainty associated associated with a problem facing the decision decision maker- and must influence the behavior of the decision maker in a positive way. 1. ,hat is is informati information on overload: overload: Eow Eow does itit affect affect decision decisionmaki making: ng: >%? Information overload overload refers to a situation in which which a manager receives receives more information information than can be assimilated. natural response to this is to ignore information or select only some. In additionintuition can displace logic. 1". !4plain the the phrase Fspan of control.G ,hat are the implications implications for the management reporting system system of this principle: >%? managers managers span of control is the number of subordinates he;she supervises supervises directly. directly. The The broader a managers span of control- the more autonomy his;her subordinates enjoyBthe less involved the manager is in their specific tasks. This impacts the '$% in terms of the level of detail a manager re/uires. If the span is wide- less detailA if narrow- more.
1&. !4plain !4plain the the three three types types of responsib responsibilit ility y centers. centers. >%? Cost centers are centers are organizational units with responsibility for cost management. "ro(it centers have centers have responsibility for both cost management and revenue generation. !n*estment centers have responsibility for cost management- revenue generation- and also the investment and use of assets. 1(. 5escribe at least three characteristics characteristics of strategic strategic planning planning decisions decisions and their information information re/uirements. >%? ha*e long time (rames Bcreate a need for information that supports forecastingforecastingre2)ire s)mmari3ed in(ormationnot in(ormation not encumbered by detailtend to %e nonrec)rring thus having little historical data in support in*ol*e a lot o( )ncertaintyi.e.)ncertainty i.e.- are unstructured decisions are %road in scopethus scope thus re/uiring broad based information o(ten re2)ire signi(icant e1ternal in(ormation Bgenerated in(ormation Bgenerated beyond the information information system itself. 1*. ,hat three three element elements s must be present present for for a problem problem to be Fstruc Fstructure tured:G d:G data, proced)res, o%-ecti*es 1+. Eow does manage management ment by e4cepti e4ception on help to alleviat alleviate e information information overloa overload d by a manager: >%? The principle of management by e4ception e4ception is that managers should should limit their their attention to to potential problem areas rather than being involved with every activity or decision. Thus- only situations which are not proceeding as scheduled are highlighted by the reports and analyzed by the manager. Thus- the manager does not have to weed through multiple reports to find the situations which need attention. 2. 2. ,hat ,hat is a data data ware wareho hous use: e: >%? >%? data data ware wareho hous use e is a rela relati tion onal al data databa base se mana manage geme ment nt system that has been designed specifically to meet the needs of data mining. The warehouse is a central location that contains operational data about current events 8within the past 2 hours9 as well as events that have transpired over many years.
