Which of the following is a benefit of investing in a new information system?

Prepare for the ACCA Performance Management (F5) Certification Exam with our comprehensive quiz. Test your knowledge with multiple-choice questions, detailed explanations, and engaging flashcards. Boost your confidence and excel in your exam!

Investing in a new information system typically leads to enhanced processing efficiency. This improvement is critical as modern information systems are designed to streamline processes, automate repetitive tasks, and optimize workflows, which can significantly reduce the time and resources required to complete tasks.

Enhanced processing efficiency allows organizations to handle larger volumes of transactions with greater accuracy and speed. As a result, businesses can respond more rapidly to customer needs, make informed decisions based on timely data, and ultimately gain a competitive advantage in their industry.

The other options refer to potential drawbacks or limitations that would not be expected outcomes of a successful investment in an information system. For instance, decreased processing capacity and slower data retrieval would hinder operations rather than improve them, making them unfavorable characteristics of a system. Additionally, the inability to store large amounts of data would limit an organization's ability to accumulate and analyze valuable information, which is contrary to the purpose of upgrading to a new information system.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy