Identifying and Selecting Systems Development Projects

J. K. Choi, chief financial officer for Petrie Electronics, came early to the quarterly IS Steering Committee meeting.
Choi, who was the chair of the committee, took his seat at the head of the big table in the corporate conference room. He opened the cover on his tablet PC and looked at the agenda for the day’s meeting. There were only a few proposed systems projects to consider today. He was familiar with the details of most of them. He briefly looked over the paperwork for each request. He didn’t really think there was anything too controversial to be considered today. Most of the requests were pretty routine and involved upgrades to existing systems. The one totally new system being proposed for development was a customer loyalty system, referred to internally as “No Customer Escapes.”
Choi chucked at the name as he read through the proposal documents. “This is something we have needed for some time,” he thought. After about 15 minutes, his administrative assistant, Julie, came in. “Am I late or are you early?” she asked. “No, you’re not late,” Choi said. “I wanted to come in a little early and look over the proposals. I wasn’t able to spend as much time on these yesterday as I wanted.” As Julie was about to respond, the other members of the committee started to arrive. First was Ella Whinston, the chief operating officer. Choi knew that Ella was the champion for the customer loyalty project. She had talked about it for years now, it seemed to Choi. One of her people would make the presentation in support of the system.
Choi knew she had buy in on the project from most of the other members of the c-suite. He also knew that Joe
Swanson, Petrie director of IT, supported the project. Joe was away, but his assistant director, Jim Watanabe, would attend the meeting in his place. Ella had already let it be known that she expected Jim to be the project manager for the customer loyalty system project. Jim had just joined the company, but he had had five years of experience at Broadway Entertainment Company before its spectacular collapse. “Good thing I unloaded all that BEC stock I owned before the company went under,” Choi thought. That reminded him of the meeting he had later today to plan the annual stockholders’ meeting. “Better not let the steering committee meeting run too long,” he thought. “I’ve got more important things to do today.”
Next to arrive was John Smith, the head of marketing. John, who was also a member of the steering committee, had been with Petrie for most of his career. He had been with the company longer than anyone else on the steering committee. Just then, Jim Watanabe came speeding into the conference room. He almost ran into John Smith as he sailed into the room. It looked like he was about to drop his tablet and spill his coffee on Smith. Choi chuckled again. “Welcome, everyone,” Choi said. “I think we are all here. You all have copies of the agenda for this morning’s meeting. Let’s get started.” “Sorry to interrupt, JK,” Ella said. “Bob Petroski is not here yet. He will be presenting the proposal on the customer loyalty system project. I don’t know where he is. Maybe he got held up in traffic.” “The customer loyalty system discussion is the last item we will discuss today, so we can go ahead with the rest of the agenda. Bob does not need to be here for anything except that discussion,” Choi explained.
Choi looked around the table once more. “OK, then, let’s get started. Let’s try to keep to the agenda as much as possible. And let’s watch the clock. I know we are all busy, but I have a very important meeting this afternoon.
Julie, see if you can locate Bob.”
Case Questions
1. What is an IS steering committee? What are its major functions? Typically, who serves on such a committee?
Why do these committees exist?
2. Where do ideas for new information systems originate in organizations?
3. What criteria are typically used to determine which new information systems projects to develop? What arguments might Bob Petroski make for developing the proposed customer loyalty system?
4. What kind of information would you need to have to be able to put together a table like to present to the steering committee? How much of that information is objective? Subjective? Justify your answer.

process control employment 48000, 1200 overhead controls in manufacturing, Materials management 59200.

When calculating the cost of producing products, normal costing takes into account overhead, labor, and raw materials. By dividing the overhead rate for each product by the total number of products your team produces over the course of a given time period, normal costing calculates the actual material and labor costs while collecting information on overhead costs.

You can compare total production costs with total revenue by normalizing costs. This makes it simple to compare current operations with historical production costs and can aid in the development of projections for the future.

Calculating the true costs of a project, including its materials, labor, and overhead, is known as actual costing. The cost of labor also includes the salaries and wages of other contract workers. Money spent on raw materials is included in the cost of materials.

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For established businesses, economies of scale indicate that manufacturing costs per unit are lowered as production size increases.

This may make it difficult for new businesses to compete on pricing since they may not be able to produce at the same level of efficiency as the established business.

A company's entire costs to create, store, and sell one unit of a specific item or service are known as the unit cost. Cost of goods sold and unit costs are the same (COGS). The expenses involved in producing an item or service, both fixed and variable, are all included in this accounting metric.

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A setting where significant volumes of oil could form millions of years in the future is described by a river delta in a forested area.

A triangle-shaped landform is a river delta. The deposit of sediment carried by a river into a slower-moving body of water the river delta is the result. When a river joins a slower-moving body of water, such as an ocean, lake, or reservoir, a delta is created. If one river does not flow quickly enough to remove the silt, a delta may occasionally emerge where two rivers converge.

Both ways, the confluence of these two bodies of water results in a triangle-shaped area of land that is composed of river sediment. Because it resembles the Greek letter delta's triangle shape, it is known as a delta.

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The gadget is vehicle-installable. It may be configured to call the police emergency number automatically in an emergency, give them all the necessary location information, and direct them to the scene. A differentiation technique like this one is an example.

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Revenues are earned by selling goods or services to customers and is the first line item reported on the income statement.

What are Revenues in business?

Revenue in accounting refers to the entire amount of money made through the sale of products and services that are essential to the company's core activities. [1] The term "commercial income" can also refer to sales or turnover. Some businesses get money via royalties, interest, or other fees. [2] The term "revenue" can mean income in general or the total amount of money received during a certain time period, as in "Last year, Company X had revenue of $42 million." The broad definition of profits or net income is total revenue less total costs for a specific time period. Revenue is a component of the Equity portion of the balance sheet in accounting, and revenue raises equity.

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In a general partnership, all partners assume unlimited personal liability and responsibility for the management of the business.

A General Partnership is an agreement between two or more people to form and operate a business together. It is one of the most frequent legal entities used to establish a company. A general partnership's partners are all responsible for the business and have unlimited liability for business debts.

A general partner is personally liable for the business's debts. A general partner actively runs and controls the company.

A general partnership does not establish itself as a separate business organization from its participants due to the absence of corporate structure. Partners are unprotected from any litigation filed against the company, and their personal assets may be confiscated to meet the company's unpaid debt obligations.

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Requirement 1:  Cost of Sage's 40% interest in Adams $400,000     Sage's share of Adams' net assets (40% of $900,000) 360,000. Excess of cost over book value of Adams' shares $40,000.

What is income statement?

One of a company's primary financial statements, the Income Statement, displays profit and loss for a certain time period. After deducting all costs associated with both operational and non-operating operations, the profit or loss is calculated.

One of the three statements used in accounting and corporate finance, including financial modelling, is the income statement. The statement provides a clear and logical breakdown of the company's revenue, costs, gross profit, selling and administrative expenditures, other expenses and income, taxes paid, and net profit.

According to how the organisation does business, the statement is separated into time periods that make sense. Although some companies may employ a thirteen-period cycle, the monthly periodic division is the most typical for internal reporting.

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Inventory will cost 1,800,000 in total.

300,000 free goods are capitalised through inventories.

We arrive at the year-end inventory valuation for ABC Trading Co.

Moreover, we are aware that the cost of transporting goods abroad to clients counts as a selling expense but does not include inventory.

abc trading co. costs = ( Inventory at year-end ÷ Purchases during the year ) × abc trading co. costs from overseas

exporter of sundries costs = [($3.0 million ÷ $12.0 million) × $1.5 million]  

exporter of sundries costs =  $375,000

The business will capitalism all of the costs involved in getting the products suitable for usage and sale.

These include the freight in which inventory is capitalized.

The cost of shipping (for exports) lowers sales income.

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Note: The correct question would be as bellow,

ABC Trading Co. commenced operations during the year as a large importer and exporter of sundries. The imports were all from one country overseas. The export sales were conducted as drop shipments. ABC never actually took possession of the goods, which were merely transshipped at Houston. ABC Trading reported the following data: Purchases during the year $15.0 million Shipping costs from overseas $1.5 million Shipping costs to export customers $1.0 million Inventory at year end $3.0 million. What amount of shipping costs should be included in ABC Trading's year-end inventory valuation?

If these two countries specialize according to the comparative advantage and then trade with each other than Canada will export the wheat and import televisions.

If a country's economy can produce a given good or service at a lower opportunity cost than its trading partners, it has a comparative advantage. Trade is favourable for firms, governments, and people alike, according to the comparative advantage principle. When speaking of international trade, comparative advantage refers to a country's capacity to produce commodities more quickly or inexpensively than other countries. While this often shows the benefits of trade, several contemporary economists also acknowledge that focusing only on comparative advantages might result in resource exploitation and nation-wide resource depletion. Although it's likely that David Ricardo's master invented analysis, the English political economist is most frequently credited with developing the idea of comparative advantage in his 1817 book On Principles of Political Economy and Taxation.

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In the circular flow model, households purchase goods and services from firms in the product market, generating income for the firms.

The circular flow model is a visual representation of the flow of goods, services, and money in an economy. In this model, there are two main markets: the product market, where households purchase goods and services from firms, and the factor market, where firms purchase labor and other resources from households. When households purchase goods and services from firms in the product market, this generates income for the firms. This income, in turn, is used to pay for the resources that the firms purchased in the factor market, completing the circular flow. The circular flow model helps to illustrate the relationships between different parts of an economy, and highlights the importance of spending and income in driving economic growth.

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The answer is option a. Property damage, it will pay extra costs necessary to make temporary repairs.

Property is an item of law that encompasses possessions or riches collectively and frequently has a strong sense of individual ownership. The complex of legal connections between and among people regarding items is referred to as "jural relationships" in law.

Anything that a person or organization has legal ownership over is considered property. Property can refer to both tangible goods with a future value, like houses, automobiles, or appliances, as well as intangible items with no future value, like stock and bond certificates.

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"Grilled Chicken Sandwich - $8.50". This is not a method suggested in the video to increase sales of the sandwich. Grilled chicken sandwiches are a healthy option for lunch or dinner.

What is a Grilled Chicken Sandwich?

A grilled chicken sandwich is a popular sandwich that is made by cooking chicken on a grill or griddle. The chicken is usually marinated in a mixture of herbs and spices, then cooked on the grill until it is cooked through. The chicken is then served on a toasted bun, topped with lettuce, tomato, onion, cheese, and other condiments such as mayonnaise, mustard, and ketchup. This sandwich is popular for its ease of preparation and its delicious flavor. It can be served hot or cold, and can be served as an entree or a snack. Grilled chicken sandwiches are a healthy option for lunch or dinner and can be enjoyed by people of all ages.

So, "Grilled Chicken Sandwich - $8.50". This is not a method suggested in the video to increase sales of the sandwich.

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Karina's remarks suggest that she needs to provide mission statement for the Mountain Mist.

The mission statement of an organisation encapsulates the reason for the organization's existence, its ultimate goal, the emphasis of its activities, the kind of product or service it provides, its target market or consumers, and the geographical area in which it works. A company's leaders' intents and aspirations for the firm are expressed in its purpose, which is different from an outsider's description of the business. A mission statement seeks to communicate the goals and objectives of the firm to its employees, customers, suppliers, and other stakeholders. A mission statement also provides a sense of identity for employees. Organizations often do not change their mission statements over time since they explain their constant, ongoing purpose and concentration.

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As a component of the situation analysis, a Market Research focuses on the current state of the market to which the firm will sell its products.

What do you know about a Market Research?

Market research is a process of collecting, analysing and interpreting data in order to make business decisions. It involves researching the target market, segmenting the market, assessing customer needs and preferences, understanding the competition and setting objectives. This helps businesses to understand their market better and create a product or service that meets the needs of their customers. It is important to understand the current market trends and customer behaviour in order to create a successful strategy. Market research also helps businesses to identify new opportunities, launch new products, assess customer satisfaction and measure the effectiveness of their marketing efforts.

So, The required answer is  Market Research.

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The first study conducted at the Hawthorne plant as part of what is now known as the Hawthorne Studies sought to assess whether or not workplace lighting level affected worker productivity.

The Hawthorne experiments were a series of worker productivity studies that began in 1924 at the Western Electric plant near Chicago, Illinois.

The Hawthorne investigations investigated the effects of lighting, work breaks, and pay incentives. They also included a comprehensive interviewing program in which employees may express their criticisms and concerns.

Several productivity studies and worker groups were included in the Hawthorne studies. When the Hawthorne studies concluded in 1932, almost 20,000 employees had taken part in some way. Many reports of the Hawthorne research concentrate on a particular set of workers, ignoring the lack of support for the so-called Hawthorne effect and other variables that contributed to productivity gains.

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The correct option is D. Period costs are all costs not included in product costs.

Duration charges are costs that can not be capitalized on a company's stability sheet. In other words, they are expensed inside the period incurred and seem on the profits announcement. duration prices are also called length costs.

Length fees aren't assigned to 1 precise product or the fee of stock like product fees. consequently, period fees are indexed as a cost inside the accounting duration in which they passed off. manufacturing charges are commonly part of the variable fees of enterprise due to the fact the amount spent will vary in percentage to the amount produced. but, the costs of equipment and operational areas are probable to be fixed proportions of this, and these might also well appear beneath a set value heading or be recorded as depreciation on a separate accounting sheet.

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Complete Question:

period costs ______.

Multiple select questions.

A). are expensed in the period incurred flow through the inventory accounts.

B). All costs in a merchandising company are period costs

C). Period costs are expensed when occurred

D). include all costs that are not product costs

By reviewing A. Income Statement A financial statement user would determine if a company was profitable or not  Over a period of time by reviewing the Income Statement (This is a statement that shows profitability or lack thereof).

The income statement is a company's financial report made by a certain financial sector. The contents of this report are revenue data as well as expenses borne by the company. Usually this report is made to explain the company's financial condition in a certain period. Therefore, most of the reports are done at the end of the year or the end of the month, according to the provisions of the company. With this financial report, superiors can find out the company's current financial condition. So that the report can be used as a basis for evaluation for further policy steps.

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All of the following statements about the project life cycle and the product life cycle are true except The product life cycle is contained within the predictive project life cycle.

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False. When a price floor is implemented, there is an increase in producer surplus, but a decrease in consumer surplus and social surplus.

The price floor sets a minimum price that producers are required to charge for their products or services. This minimum price is higher than the equilibrium price, so producers receive more money than they would have received at equilibrium.

However, the higher price means consumers have to pay more for the same product or service, resulting in a decrease in consumer surplus.

Additionally, because the price floor sets a higher price than the equilibrium price, the quantity produced is lower than it would have been at equilibrium, resulting in a decrease in social surplus.

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To have the sun at its zenith on the summer solstice in June be in the Tropic of Cancer, one needs make travel arrangements to locations on earth that are in this area.

At a latitude of 23d 26' 22" (23.4394 degrees) north of the Equator, the Tropic of Cancer is the furthest latitude from the Equator at which the sun may be seen directly overhead at noon. This occurrence takes place during the June solstice, when the northern hemisphere is most inclined toward the sun.

The Northern Tropic, commonly known as the Tropic of Cancer, is the farthest northern circle of latitude on Earth where the Sun can be directly overhead. This happens on the June solstice, when the Northern Hemisphere is most inclined toward the Sun.

If you haven't read this frequently-banned book, it is a first-person account of a writer's life in Paris in the 1920s and 1930s that includes numerous candid depictions of sexual activities. These were the reasons the book, which had first been published in 1934, was later outlawed in the United States.

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Suppose that you observe that when the price of a particular vaccine falls by 4%, the quantity purchased rises by 2%. this implies that this vaccine is price elastic in demand and that the price elasticity of demand is equal to 0.5.

What is price elasticity?

Price elasticity measures how customers respond to changes in the cost of goods and services. Although demand often decreases when prices rise, customer responses to price changes might vary depending on the product or service and the market.

Here, it is abundantly evident that there is an inverse relationship between demand and price.

And the formula 2/4 = 0.5 will be used to get the elasticity in this case.

With the current price decline, the level of quantity will increase.

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Accounts impacted by each of the aforementioned transactions include

(dr.) Cash                                (cr.) Derrick Wells, Capital

(dr.) Equipment                        (cr.) Cash

(dr.) Cash                                (cr.) Fees Income

(dr.) Advertising expense        (cr.) Cash

(dr.) Supplies                                (cr.) Cash

Ledger posting, the second phase of the accounting cycle, is when accepted entries are transferred to the relevant accounts. Producing a trial balance comes after ledger posting.

Once transactions have been recorded in the journal and the ledger, which is the primary book, they are then posted. The act of shifting journal entries to the relevant ledger accounts is known as posting to the ledger. Ledgers are balanced to find inconsistencies at the end of the year.

Accounting is essential for preventing fraud and fraud. Using a ledger, the double entry accounting approach can be utilized to maintain an accurate account for your business. The ledger's data is utilized to create the annual financial statements.

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Studies of the major developed nations show that the (B) equity markets are where most businesses go to find capital to finance their operations.

A stock market, also known as an equity market or share market, is the collection of individuals who buy and sell stocks, also known as shares, which represent ownership stakes in corporations.

These securities may be listed on a public stock exchange or only traded privately, such as shares of private corporations that are offered to investors through equity crowdfunding platforms.

An investment strategy is typically present when making an investment.

Studies of the main industrialized nations reveal that when businesses look for money to finance their operations, they typically find it in the equity markets.

An equity investment is a cash put into a business through the purchase of its stock on the stock exchange.

On a stock exchange, these shares are typically traded.

Therefore, studies of the major developed nations show that the (B) equity markets are where most businesses go to find capital to finance their operations.

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Complete question:

Studies of the major developed countries show that when businesses go looking for funds to finance their activities they usually obtain these funds from?

A) government agencies.

B) equities markets.

C) financial intermediaries.

D) bond markets.

Due to this incident, GDP will grow in 2021 and consumption will rise.The use of products and services by people or families is referred to as consumption.

It is an essential element of economic activity and is intimately related to consumer spending and economic growth. Lower levels of consumption could signify an uncertain or slowing economy, while higher levels could indicate improved consumer confidence and a robust economy. Due to the frequent use of limited resources, production of trash, and pollution, consumption can also have an adverse effect on the environment and resources. Income, pricing, tastes, and preferences, as well as government policies like taxes and subsidies, can all have an impact on the level of consumption. The importance of sustainable consumption, which strikes a balance between economic growth and environmental conservation

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The breakeven stock price is the price at which the total profit from the options positions is equal to zero. So the breakeven stock price above which the trader makes a profit is $40.

The cost of buying two call options is 2 * $3 = $6.

The cost of buying one put option is $4.

So the total cost of the options positions is $6 + $4 = $10.

At a stock price of $30,

the call options will have no intrinsic value and the put option will have no intrinsic value,

so the trader will have a loss of $10.

At a stock price above $30, the call options will have intrinsic value and the put option will have no intrinsic value, so the trader will have a profit. The intrinsic value of a call option is equal to the stock price minus the strike price.

So for a stock price of S,

the intrinsic value of the call options will be S - $30.

The total profit from the options positions will be 2 * (S - $30) - $10.

The breakeven stock price is the price S at which the total profit is equal to zero. Setting 2 * (S - $30) - $10 = 0,

we get S = $40.

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The Dividend Payout Ratio (DPR) is the quantity of dividends paid to shareholders in relation to the total amount of internet profits the organisation generates.

In other words, the dividend payout ratio measures the share of internet income that is distributed to shareholders in the form of dividends.

Dividend Payout Ratio = Dividends ÷ Net Income

For example, if a organization issued $20 million in dividends in the contemporary length with $100 million in internet income, the payout ratio would be 20%. Payout Ratio = $20m ÷ $100m = 20%

A dividend is paid per share of stock. U.S. groups usually pay dividends quarterly, month-to-month or semiannually.

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A conservative, risk-averse manager would use the maximization of expected utility criterion, while an aggressive, risk-taking manager would use the maximization of expected profit criterion.

In decision-making, there are two main criteria that managers can use to evaluate investment opportunities and make decisions. A conservative, risk-averse manager is typically concerned with minimizing the risk of loss and maximizing the expected utility, which is a measure of the satisfaction or happiness that an investment is expected to bring. As a result, these managers often prioritize safety and stability over high returns. On the other hand, an aggressive, risk-taking manager is more focused on maximizing expected profit, even if this means taking on greater risk. This manager is willing to accept a higher level of risk in order to achieve higher returns and increase the bottom line of the firm. The choice between these two criteria will depend on the goals and risk tolerance of the manager, as well as the overall risk profile of the organization. By understanding these criteria, managers can make informed decisions that align with their investment goals and risk preferences.

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Prince would want to create a  Market  segmentation matrix  to help visually estimate the market size of a given product sold to a specific market segment.Given Prince's multiple-segment strategy and limited marketing budgets.

Market Segmentation Matrix is a tool used to help visually estimate the request size of a given product vended to a specific request member. This is particularly useful for companies like Prince with limited marketing budgets, who need to make informed opinions about which parts to target.

The matrix combines the two confines of request segmentation request size and request growth. request size represents the implicit profit a company can induce from a member, while request growth indicates the eventuality for unborn profit growth.

By conniving parts in a matrix, companies can fluently determine which parts offer the stylish combination of request size and growth and prioritize their marketing sweats consequently.

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Managers under pressure to meet sales, production, or other targets are thought to be managing for short-term results, while managers who try to understand the increasingly interconnected nature of business around the world are managing for long-term sustainability.

Long-term sustainability is just a business proposition that has received a lot of attention recently, thanks to disclosures concerning global warming and depleting natural resources. Long-term sustainability, in its most basic level, implies that a firm will increase its prospects of existence in the future by ensuring that the resources employed by the organization are appropriately controlled and maintained. According to a United Nations research conducted in 2010, the great majority of corporate chief executives (CEOs) feel that long-term sustainability is a crucial determinant in long-term performance. When contemplating how the assets of one firm might impact the resources of another, long-term sustainability is becoming more complicated. By demonstrating a corporation's interest in resource conservation and responsible business practices, the proprietors of that company have a better chance of being included in or advised by regulatory panels that will set future procedures. Long-term sustainability implies that, at the most basic level, humans are the most important resource.

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Compared to departments, administrative agencies provide a more specific purpose. However, departments are not protected from partisan politics while making decisions. This is true for agencies.

a government agency with the power to create more exacting and complex rules than are conceivable in a legislative environment in order to carry out legislative mandates. Numerous administrative organisations are also charged with enforcing the legislation.

The creation and issuance of regulations that affect legislation is one of the main responsibilities of administrative agencies. Administrative regulations may be legislative, procedural, interpretive, or internal in nature. The most significant regulations are legislative ones since they typically have legal power and supplement statute law.

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