Which statement about Transaction Processing Systems is true?

Which statement about Transaction Processing Systems is true?

• A. They are used to process routine, structured transactions
• B. They primarily support strategic decision making
• C. They replace all human workers
• D. They automate creative tasks

Answer: (C)

Transaction Processing Systems focus on the day-to-day, routine, structured transactions that keep business operations moving. They automate the capture, processing, storage, and retrieval of transactional data, delivering speed, accuracy, and audit trails. Examples include payroll processing, order entry, inventory updates, and billing. Because these tasks are repetitive and well-defined, TPS optimize for high volumes and consistent, reliable processing. They aren’t built primarily to support strategic decision making (that role belongs to systems like MIS/DSS/BI), and they don’t replace all human workers or automate creative, non-routine tasks. TPS handle the repetitive, rule-based parts of work, while humans handle exceptions and tasks requiring judgment or creativity. So, the statement that TPS are used to process routine, structured transactions best captures their purpose.

Transaction Processing Systems focus on the day-to-day, routine, structured transactions that keep business operations moving. They automate the capture, processing, storage, and retrieval of transactional data, delivering speed, accuracy, and audit trails. Examples include payroll processing, order entry, inventory updates, and billing. Because these tasks are repetitive and well-defined, TPS optimize for high volumes and consistent, reliable processing.

They aren’t built primarily to support strategic decision making (that role belongs to systems like MIS/DSS/BI), and they don’t replace all human workers or automate creative, non-routine tasks. TPS handle the repetitive, rule-based parts of work, while humans handle exceptions and tasks requiring judgment or creativity.

So, the statement that TPS are used to process routine, structured transactions best captures their purpose.