In AIS, which data type is primarily used to describe core entities such as customers and vendors?

In AIS, which data type is primarily used to describe core entities such as customers and vendors?

• A. Transaction data
• B. Master data
• C. Metadata
• D. Derived data

Answer: (B)

Master data are the stable records that describe the core entities involved in a business process, such as customers and vendors, along with their key attributes (names, addresses, contact terms, identifiers, etc.). This information stays relatively constant and is reused across many transactions, providing a single, consistent reference point for identifying entities throughout the AIS. Because transactional activities (sales, purchases, payments) rely on these fixed identifiers to link events to the right entities, master data is the appropriate type to describe core entities. In contrast, transaction data captures the individual events themselves and changes with activity; metadata describes the definitions and structures that govern data (like field types and data rules); and derived data are results computed from base data (such as totals or KPIs).

Master data are the stable records that describe the core entities involved in a business process, such as customers and vendors, along with their key attributes (names, addresses, contact terms, identifiers, etc.). This information stays relatively constant and is reused across many transactions, providing a single, consistent reference point for identifying entities throughout the AIS. Because transactional activities (sales, purchases, payments) rely on these fixed identifiers to link events to the right entities, master data is the appropriate type to describe core entities.

In contrast, transaction data captures the individual events themselves and changes with activity; metadata describes the definitions and structures that govern data (like field types and data rules); and derived data are results computed from base data (such as totals or KPIs).