Question

Sir the below question is not a past Acca exam question, its an own kit question. Please tel me 1 thing that both parts a) and b) are included in our syllabus? and is it necessary to read and learn both of these?

B5 Cars manufactures motor vehicles for sale to the general public and companies. Several
other motor vehicle manufacturers operate within the industry, which is highly
competitive: there is a trade association which collects a wide range of information.
B5 Cars has five manufacturing plants and 53 sales outlets in the country in which it
operates. Information for the company’s executive information system (EIS) is obtained
both from internal sources such as the production plants, and also external sources such as
customers. Internally-generated information is sent to head office over a wide area
network.
Due to the overall escalating cost of the company’s EIS, the board has decided to collect
only internally-produced information. This decision has been taken against the advice of
the chief information officer.
Required:
(a) Suggest and explain reasons why the company’s EIS could be becoming expensive
to operate. (6 marks)
(b) Evaluate the decision of the board to concentrate on internally-produced
information. Clearly describe the information sources that will be lost and explain
the effects on the company’s information systems and its products. (14 marks)
(Total: 20 marks)