The Business Context of Information Systems (D2) IMIS DIPLOMA QUALIFICATIONS

IMIS DIPLOMA QUALIFICATIONS
The Business Context of Information Systems
(D2)
Tuesday 2nd June 2015 14:00hrs – 17:00hrs
DURATION: 3 HOURS
ANSWER PAPER
Candidates should answer ALL the questions in Part A and THREE of the five
questions in Part B. Part A carries 40% of the marks available and Part B
carries 60%. Candidates should allocate their time accordingly.
No reference material of any kind may be taken into the examination.
[Turn over]
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PART A. Answer ALL questions in this section
Answer A1
a) 146/730 x 365
=
0.2 x 365
b) 300/75
=
4 times
or
75/300 x 365
=
=
0.25 x 365
73 days
=
91 days
(Marking – up to 3 marks per correct answer, maximum 5 marks)
(Total 5 marks)
Answer A2
Assets and Liabilities
On the Balance Sheet, Assets are what the business owns,
Liabilities represent what the business owes to others.
Gross Profit and Net Profit
Gross Profit is the margin shown after deducting only the immediate and direct
costs-of-sale (purchased or manufactured cost).
Net Profit is the margin left after the deduction of all of the businesses costs.
Debtors and Creditors
Debtors are trading partners who owe money to the business, they are usually
customers.
Creditors are trading partners who are owed money by the business, they are
mainly suppliers.
(Marking – up to 3 marks per example, maximum 5 marks)
(Total 5 marks)
Answer A3
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Buffer stock
Stocks held as a precaution to cope with unforeseen demand
Lead time
The time between placing an order and receiving the goods into stock
Two-bin system
A simple method of dividing stock into two bins. Stock is issued from the first
bin only and when that is empty it triggers the ordering of more stock. Whilst
waiting for delivery the second bin is used
Work-in progress stock
Partly-finished goods in various states of completion, they are neither Raw
Materials nor Finished Goods
(Marking – up to 3 marks per example, maximum 5 marks)
(Total 5 marks)
Answer A4
a)
b)
c)
d)
e)
Incremental
Zero-Based
Flexible
Standard
Marginal
(Marking – 1 mark per example, maximum 5 marks)
Answer A5
a)
b)
c)
d)
e)
EL
ES
EL
I
ES
(Marking – up to 1 mark per example, maximum 5 marks)
(Total 5 marks)
Answer A6
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Span of control
Refers to the number of subordinates reporting to or under the control of a superior
manager.
Matrix structure
A structure where people from different functions are brought together and organised
to work on a particular project. They retain some functional responsibility whilst being
flexible enough to work effectively within multi-disciplinary teams.
Chain of command
Refers to the way in which authority and power are passed down within a business
and in particular how many management layers exist within the organisation.
Organisation chart
A diagram that illustrates the structure and working relationship of people within an
organisation, showing the reporting and communication lines, their level of seniority,
and their position within functions and teams.
(Marking – up to 3 marks per example, maximum 5 marks)
(Total 5 marks)
Answer A7
Age distribution
The relative proportion of children, working age and retired people within the
total population, each has different needs for products and services
Gender distribution
The percentages of males and females, each group being seen as a different
markets for fashion items
Urban/Rural location
The differing needs of city and country dwellers
Household size
The trend towards smaller households means increased demand for
household goods
.
Ethnicity
Some ethnic groups have particular needs or do not purchase some items.
(Marking – up to 3 marks per example, maximum 5 marks)
(Total 5 marks)
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Answer A8
Decision support/Investment appraisal to perhaps decide which asset to purchase
Sales analysis in detail, by area or product to better direct the sales efforts
.
Comparison of all types of actual results against target figures. (Variance Analysis)
Profitability analysed by product/location/department/period of time
The costs of individual products and how to reduce them
What-if? Exploration of the effects of various possible strategic decisions
Budgetary control and future planning
(Marking – up to 3 marks per example, maximum 5 marks)
(Total 5 marks
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PART B. Answer THREE questions only from this Section.
Answer B9
Appropriately detailed discussions around such topics as:
a)
Unlimited liability
Effect of long-term illness
Continuity problems on retirement
Lack of sufficient capital
Private/family wealth is at risk
Lack of shared decisions
Can be sued by customers
Lack of specialism
Note that the above are summary points only, they do not indicate the adequate
length of an answer required for full marks.
(Marking 3 x up to 5 marks per disadvantage)
b)
‘Private’ and ‘Public’ here refers to the way in which shares are issued and
traded.
In a private limited company shares are not issued to or traded amongst the
general public – they can only be sold to new members with the approval by of
the existing shareholders who tend to be a small group, and often a familyrelated group.
In a public limited company shares are freely issued and traded amongst the
general public on the open market and are therefore widely distributed.
(Marking – up to 5 marks)
(Total 20 marks)
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Answer B10
Appropriately detailed discussions around such topics as:
Job security
Promotion opportunities
Working conditions/safety/environment
Job satisfaction
Union recognition
Frequency of disputes
Pride in belonging to a respected and recognised organisation
Training opportunities
Social and sports facilities
Technological leadership of the company
Note that the above are summary points only, they do not indicate the adequate
length of an answer required for full marks.
(Marking 4 x up to 5 marks per comparison)
(Total 20 marks)
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Answer B11
a)
Alpha
330/600 = 55%
Beta
420/800 = 52.5%
Alpha has the better GP margin
(Marking 2 x up to 2 marks per correct calculation, 1 mark for stating Alpha
maximum 5 marks)
b)
Expenses
(Marking - 2 marks)
c)
Alpha
Beta
120/2000 = 6%
170/2000 = 9%
(Marking 2 x up to 3 marks per calculation – maximum 5 marks)
d)
Appropriately detailed discussions around such topics as:
Although they are in the same ‘sector’ (construction), each company may
actually specialise in different markets (e.g. residential and industrial
buildings).
The accounts being compared may have a different year end. Adverse market
events that are included for one of them (e.g. a period of bad weather) may
not be represented in the other P & L.
Each company will have different accounting policies, including different
interpretations of what is Cost of Sales and what is Expenses.
Companies can manipulate profit results, postponing profit or bringing it
forward, in order to present the best appearance of success, this may distort
the comparison .
Note that the above are summary points only, they do not indicate the
adequate length of an answer required for full marks.
(Marking 2 x up to 4 marks per limitation– maximum 8 marks)
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(Total 20 marks)
Answer B12
a) Food and drink ingredients, wages for cooks and serving staff.
(Marking up to 3 marks)
b) Rental of premises, Insurance Costs, Administration costs
(Marking up to 3 marks)
c) EXAMPLE:
Some of the big costs of the cafe are fixed costs, that is they will not change
when the business expands, the rental of these premises is one example.
In 2015 we will have twice as much sales income, and spend twice as much
on direct costs, but direct costs are very small in comparison with the selling
prices – there is a big ‘mark-up’ or margin. The total amount of margin in 2014
was not enough to cover all of our fixed costs - so we made a loss. But twice
the amount of margin in 2015 will cover the unchanging amount of fixed costs
- leaving us with a surplus or profit.
(Marking – up to 10 marks)
d) This is start-up business. It had 10,000 customers over the whole of the first
year but it may well have had only 50 customers in the first week and perhaps
350 in the last week of that year. It is the type of business that can grow
quickly on a good reputation and it may have doubled its customer base
several times already and start its second year at a customer rate per week
that is already close to 20,000 per year.
A graph of customers in each week, starting near zero and showing the
upward trend, would illustrate this point.
(Marking up to 4 marks)
(Total 20 marks)
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Answer B13
a) Place, Time (in any order) or similar.
(2 marks)
b) M > W > R > C
(Marking -M before W 1m, W before R 1m, R before C 1m, all correct
bonus 1m - max 4 marks)
c) Wholesaler. A type of business which buys goods from manufacturers, in
bulk, and then sells them on, delivering them in smaller quantities to
retailers.
(Marking – up to 4 marks)
d) Direct Marketing. The distribution model where manufacturers sell direct
to consumers without the use of wholesalers or retailers.
The internet or e-commerce has made this more commonplace in recent
years.
(Marking – up to 6 marks)
e) Prices fall
f) Supply increases
(Marking 2 marks)
(Marking 2 marks)
(Total 20 marks)
END OF EXAMINATION
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Matrix of LOs and ACs
Question number
LO
1
2
3
4
5
6
AC
1.1
1.2
1.3
1.4
2.1
2.2
2.3
3.1
3.2
3.3
3.4
4.1
4.2
4.3
5.1
5.2
5.3
5.4
5.5
6.1
6.2
6.3
A1
A2
A3
A4
A5
A6
A7
A8
B9
B10
B11
B12
B13
X
X
X
X
X
X
X
X
X
X
X
X
X
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