Deck 13: Developing and Implementing Effective Accounting Information Systems

Question 1

When a waitress delivers food late to a customer because the kitchen is backed up, the "late food" is an example of a symptom while the "kitchen being backed up" is the real cause of the problem.

Answer 1

True

Question 2

The first stage in the systems development life cycle is planning the systems study itself.

Answer 2

True

Question 3

The developers of new accounting information systems should not be concerned with non-monetary figures because these are mostly irrelevant to accountants.

Answer 3

False

Question 4

In the context of systems analysis, the goal of developing a "flexible AIS" means that the system should be able to process a variety of transactions and produce a variety of outputs.

Question 5

Accountants do not have to worry much about systems studies-they are rarely affected by them.

Question 6

An important first step in the systems analysis phase of a systems study is a preliminary investigation of the system under study.

Question 7

One method of studying a current AIS is to observe the system in operation.

Question 8

It is not important to satisfy top management goals when creating a new information system because most such systems are used by operating employees, not top managers.

Question 9

A study team should approach a systems study with a narrow point of view in order to focus directly on the system and not be distracted by peripheral issues.

Question 10

"Analysis paralysis" means "analyzing a system to death" at the expense of reaching a conclusion.

Question 11

One way to help ensure a systems study uses a "broad point of view" is to assemble an interdisciplinary study team.

Question 12

The information needs of operating managers are normally easier to determine than those of top managers because their decision making tends to be better defined and narrower in scope.

Question 13

The search for more efficient ways to serve customers is an important reason why business organizations perform systems studies.

Question 14

"Cost" is rarely a concern in developing information system.What is more important is that the anticipated benefits of a new AIS exceed its costs.

Question 15

The three major types of organizational goals discussed in the chapter are (1)general systems goals, (2)computer goals, and (3)salary goals.

Question 16

Most systems development life cycles consist of mutually exclusive activities, with little overlap between the stages.

Question 17

The information needs of top managers tend to be the most detailed, and focus on short range planning and budgeting.

Question 18

The first stage in the systems development life cycle is analyzing the company's current system.

Question 19

The members of a systems study team should be from the same discipline or area so that they can work together well.

Question 20

Top management involvement is critical to the success of a systems study.

Question 21

Within the context of systems design, the "make or buy" decision refers to whether an organization should purchase an existing system, or develop its own system.

Question 22

Within the context of systems design, an example of a "demand report" is one that shows anticipated demand for a new product.

Question 23

Prototyping is an approach to systems design whereby a design team develops a simplified shell of working software for a proposed information system.

Question 24

Within the context of systems design, an example of an "exception report" is one that identifies exceptional employees, as judged by popular vote.

Question 25

An advantage of prototyping is that models are usually developed without the aid of a computer.

Question 26

Unless the human element of a systems change is considered, the best designed system "on paper" will often be an operational failure when it is implemented.

Question 27

Employee behavioral problems are rarely important in systems analysis and design work because most systems are computer-based, not human-based.

Question 28

An important deliverable from the analysis portion of a systems study is the final systems analysis report, which should be sent to the company's steering committee.

Question 29

An example of "legal feasibility" is whether or not a proposed computer system can comply with state and federal statutes.

Question 30

Systems survey work might include gathering data on an existing information system or observing the current system in operation.

Question 31

"Economic feasibility" refers to whether a company can afford a proposed system.

Question 32

An example of a soft-copy report is one that identifies slow-moving items where demand is soft.

Question 33

In designing an AIS, system developers should design the outputs of the system first, not the inputs.

Question 34

The term "cost/benefit" is most closely associated with the economic feasibility of a proposed accounting information system.

Question 35

When considering the design of a new system, four types of feasibility concerns are (1)technical feasibility, (2)operational feasibility, (3)schedule feasibility, and (4)legal feasibility.

Question 36

"Schedule feasibility" is not important to a study team if a company already has an automated system.

Question 37

When developing a new AIS, it is important for designers to delay developing controls for it so that they can retrofit controls after the new system is best understood.

Question 38

When developing the specifications for a new AIS, designers begin with outputs-not inputs or processing requirements.

Question 39

For a system to be totally feasible, all feasibility areas must be considered in the
process.

Question 40

"Schedule feasibility" refers to whether or not computer vendors can provide bids in a timely manner.

Question 41

When comparing computer vendor proposals, the reputations of these vendors should also be evaluated.

Question 42

The term "RFP" stands for "relative forthcoming price."

Question 43

Gantt charts are the same as PERT charts.

Question 44

An alternative to developing its own AIS, an organization might consider outsourcing the processing to an external company.

Question 45

PERT is an acronym for "Project Expert and Resource Technique."

Question 46

Knowledge process outsourcing (KPO)mainly refers to outsourcing to offshore companies in places where labor is cheap.

Question 47

One implementation problem is installing a new system that is not adequately documented or tested.

Question 48

The implementation and initial operation phase of a systems study is also known as the "action" phase of a systems study.

Question 49

Systems study work ends when the follow?up analysis shows that no further adjustments need to be made to the newly implemented system.

Question 50

Another common term for "prewritten software" is "canned software."

Question 51

One goal that outsourcing rarely achieves is saving money.

Question 52

The "slack time" for a PERT activity represents the amount of time the activity can be delayed without delaying the entire project.

Question 53

The purpose of PERT is to coordinate the activities in a project, such as a systems implementation project.

Question 54

In selecting a vendor finalist, a steering committee can use a point-scoring analysis to evaluate the proposals of alternate computer vendors.

Question 55

An example of knowledge process outsourcing (KPO)is processing tax returns.

Question 56

The term "RFP" stands for "request for proposal."

Question 57

The critical path represents the longest path through a PERT network diagram.

Question 58

A PERT network diagram reflects the logical sequence of systems implementation activities.

Question 59

The term "RFP" stands for "reference project."

Question 60

One thing that can go wrong during systems implementation is implementing a system that has not been completely tested.

Question 61

An intensive investigation of a company's present information system in order to discover systems weaknesses is termed a:

A)Systems study
B)Systems follow?up
C)Systems design
D)Systems survey

Question 62

The totality of computer systems in a firm is called its:

A)Applications portfolio
B)Systems burden
C)BPR collection
D)IT department

Question 63

Controls are rarely established during the implementation of a new computer system-this must wait for the first audit of the system.

Question 64

At the conclusion of the initial follow-up study, a project leader will prepare a report called a post-implementation review report.

Question 65

Outsourcing can help a company avoid seasonal fluctuations in its business.

Question 66

The tasks involved in "systems maintenance" are normally performed by external vendors, and rarely by a company's internal information systems department.

Question 67

Which of these is not a stage in the systems development life cycle?

A)Planning and investigation
B)Analysis
C)Design and acquisition
D)Implementation, followup, and maintenance
E)All of these are stages in the systems development life cycle

Question 68

A possible advantage of outsourcing is that it frees corporate assets for other projects.

Question 69

The terms "parallel conversion" and "direct conversion" are different terms for the same thing.

Question 70

During systems implementation, "converting computer files" is only necessary if the files are currently in manual formats.

Question 71

The acronym SDLC stands for

A)Systems design and logic for computers
B)Study, dedication, life, and conviction
C)Systems development life cycle
D)Secondary development and allocation

Question 72

A "turnkey" computer system is a complete set of computer hardware and software that allows the user to avoid technical decisions and to begin operating quickly.

Question 73

As part of the systems follow?up work, an implementation team can watch employees perform their work activities to ascertain whether the employees are executing their assigned job functions correctly.

Question 74

Which of these should come first when performing a systems study?

A)Systems analysis
B)Systems design
C)Preliminary investigation
D)Systems audit

Question 75

Which of these acronyms is not normally associated with the systems studies?

A)SDLC
B)RFP
C)PERT
D)SOX

Question 76

Outsourcing facilitates downsizing.

Question 77

When using outsourcing, a company needing data processing services hires an outside organization to handle all or part of these services.

Question 78

Which of these individuals is least likely to participate in a system's study?

A)Internal auditor
B)External auditor
C)Top manager
D)Member of the IT department

Question 79

A disadvantage of outsourcing is that a company can lose control of its IT systems and data processing.
:

Question 80

Project management software allows users to perform "what-if" analysis-for example, to determine how different work schedules might lower the time to install a new computer system.