A Management information system
B Decision support system
C Knowledge management system
D Transaction processing system
Even a casual reading of the question will highlight that the word 'system' is a key word. It is used in the stem (the initial statement which describes the system)， the prompt (the actual question) and in each of the choices.
This means that unless care is taken to read the question and think carefully about what is being asked， it would be easy to become confused. A further problem is that all four of the systems in the choices are examples of systems that might be utilised in an organisation. To select the correct answer， the best approach is to consider what each of the four systems is intended to achieve.
A management information system is intended to provide information to managers. Information is processed data， which is useful for making decisions. In this case， the stem refers to data (as it is unprocessed - information would not be an individual order， but the total value of orders for a particular product or from a specific customer). Therefore， A is not correct.
A decision support system is intended to do exactly what the name suggests - provide information to assist managers to make decisions. Once again the system relates to information. As we have already decided that the stem refers to data， B cannot be the correct answer.
Choice C presents a potential problem. A knowledge management system is intended to create， capture， store and share information. The stem notes that the system 'records details of orders' (capture) and invoices customers (creates). This may create confusion for the ill-prepared candidate. However， a well-prepared candidate will note that， once again， the issue is that 'information' is relevant to a knowledge management system. On that basis， choice C is incorrect.
D is the correct choice because a transaction processing system deals with data - which is processed to create information.
From， this we can see that a candidate who is clear about the difference between 'data' and 'information' will be able to answer this question without undue difficulty， but very clear thinking， and application of knowledge， is needed.
It is essential that， having read the question carefully， you think about your response， and that your answer is the result of a considered choice. This is because of the way in which the incorrect options have been constructed. In ACCA exams， MCQs have one correct option and three incorrect options. The incorrect options are referred to as 'distractors'. This term is used because in writing the question， the examiner attempts to identify the most common mistakes made by candidates and uses these as a basis for the incorrect options.
