Deck 21: Ais Development Strategies

Question 1

Carmie Iria,the director of a systems project committee,has received management approval for the implementation of a new accounting information system.After sending out an RFP to multiple vendors,the committee settled on purchasing a system from Optibase,a vendor who will provide the company with all of the required hardware and software.Carmie's committee has opted to purchase

A) canned software.
B) a turnkey system.
C) an outsourced system.
D) cloud computing.

Answer 1

B

Question 2

When canned software is used for systems acquisition,the maintenance aspect of the operations and maintenance phase of the SDLC

A) is more costly.
B) is not necessary and is eliminated.
C) is usually the responsibility of the vendor.
D) requires trained personnel.

Answer 2

C

Question 3

When canned software is used for systems acquisition,the physical design phase of the SDLC

A) does not involve designing and coding, although modifications may still need to be made.
B) is combined with the conceptual design phase.
C) is eliminated.
D) is unchanged.

Answer 3

A

Question 4

What is a drawback to using the requirement costing method of software and hardware evaluation?

A) Dollar estimates of costs and benefits are not included.
B) Intangible factors such as reliability and vendor support are overlooked.
C) The weights and points used are assigned subjectively.
D) There is no drawback to using the requirements costing method.

Question 5

________ and ________ are approaches to evaluating vendor proposals that do not incorporate dollar estimates of costs or benefits.

A) Benchmark problem; point scoring
B) Point scoring; requirements drafting
C) Requirements drafting; benchmark problem
D) All methods mentioned above include cost information.

Question 6

When a request for proposal (RFP)is solicited based on ________,total costs are usually lower and less time is required for vendor preparation and company evaluation.

A) specific equipment needs
B) general software needs
C) exact hardware and software specifications
D) None of the above is correct.

Question 7

________ is a performance evaluation approach that evaluates systems based on the weighted score of criteria and points.

A) Benchmarking
B) Point scoring
C) Prototyping
D) Requirements drafting

Question 8

Identify the statement below that is false with regards to the development of an AIS.

A) A newly designed AIS always meets user needs for a time period.
B) Changes to the AIS are often difficult to make after requirements have been frozen into specifications.
C) The development process can take so long that the system no longer meets company needs.
D) Users are sometimes unable to specify their needs adequately.

Question 9

When a systems vendor provides both the software and hardware needed to run a system as a package,this is known as

A) a turnkey system.
B) cloud computing.
C) an application service package.
D) canned software.

Question 10

When canned software is used for systems acquisition,the conceptual design phase of the SDLC

A) becomes a make-or-buy decision.
B) is combined with the physical design phase.
C) is eliminated.
D) is unchanged.

Question 11

What is a benchmark problem?

A) a difficulty encountered when attempting to bring an accounting information system up to industry best practices
B) a method used to compare the efficiency of alternative accounting information systems
C) the cost-benefit tradeoff defined by the relationship between increased costs and increased benefits from a system
D) a method used to test the compatibility of a new accounting information system with existing hardware and software

Question 12

Which statement is true regarding canned software and the SDLC?

A) Canned software cannot be modified to meet unique user needs.
B) Companies that buy, rather than develop, AIS software can still follow the SDLC process.
C) Most canned software meets all of a company's information or data processing needs.
D) The SDLC process does not apply to purchasing canned software.

Question 13

The more information a company provides vendors in its request for proposal,the better the chances of receiving a system that meets the organization's requirements.Which of the below statements identifies why errors may decrease?

A) All responses are in the same format and based on the same information.
B) Both parties possess the same expectations and pertinent information is captured in writing.
C) The chances of overlooking important factors are reduced.
D) The same information is provided to all vendors.

Question 14

The reasons for ________ are to simplify the decision-making process,reduce errors,provide time savings,and avoid potential disagreements.

A) leasing
B) outsourcing
C) prototyping
D) sending out a request for a proposal

Question 15

Identify one major drawback that is frequently associated with canned software.

A) A commercial software development company develops it.
B) Canned software is sold on the open market to a broad range of users with similar requirements.
C) Canned software may not meet all of a company's information or data processing needs.
D) Canned software may offer easy availability and lower costs.

Question 16

Information provided to potential vendors on a Request For Proposal should include

A) a budget for software and hardware.
B) detailed specifications for the AIS.
C) a timeframe required for completion of the project.
D) All of the above are correct.

Question 17

Carmie Iria,the director of a systems project committee,has received management approval for the implementation of a new accounting information system.After sending out an RFP to multiple vendors,the committee settled on purchasing a system from Sysys,a vendor who will provide a standard software package and post-sale technical support.Carmie's committee has decided to go with

A) canned software.
B) a turnkey system.
C) an outsourced system.
D) an end-user developed system.

Question 18

When canned software is used for systems acquisition,the implementation and conversion phase of the SDLC does not

A) involve the documentation step.
B) require the company to have trained IS personnel.
C) require the develop and test software step.
D) include A and C above.

Question 19

What is the first step a company should take when evaluating requests for proposals?

A) Carefully compare proposals against the proposed AIS requirements.
B) Determine how much of a given proposal meets the desired AIS requirements.
C) Eliminate proposals that are missing important information or fail to meet minimum requirements.
D) Invite vendors to demonstrate their systems.

Question 20

The ________ method calculates and compares the processing times of different AIS to compare system performance.

A) benchmark problem
B) mandatory requirements
C) point scoring
D) requirements costing

Question 21

Which of the following is a method for comparing alternative vendor proposals for development of an accounting information system when the vendors differ with regard to their ability to meet the project criteria?

A) point scoring
B) resource clearing
C) requirements costing
D) multi-objective optimization

Question 22

Which approach systems acquisition is generally costly and labor-intensive?

A) canned software
B) custom software
C) modified software
D) turnkey software

Question 23

Explain the concept of an application service provider.

Question 24

Firms should consider developing custom software only if

A) it will be used for critical functions like accounts receivable.
B) it will contribute to development of a significant competitive advantage.
C) the firm has the necessary expertise available in-house.
D) the available canned software is very expensive.

Question 25

What are the three methods to obtain a new information system? What is a turnkey system?

Question 26

Moneka Jones is the CIO for Noela Incorporated.Moneka wants to replace the firm's existing system.However,she wants to spend as little time as possible preparing and evaluating RFPs.When preparing an RFP,Moneka should probably

A) disclose exact hardware and software specifications.
B) disclose specific performance objectives and requirements.
C) disclose general software requirements.
D) disclose general performance objectives and requirements.

Question 27

Software as a Service (SaaS)refers to Web-based computing services provided by a(n)

A) application service provider (ASP).
B) Internet service provider (ISP).
C) end-user system (EUS).
D) help desk.

Question 28

Which of the following is not a guideline that should be used to select an outside,custom-system developer?

A) The outside developer should have an in-depth understanding of how the company conducts its business.
B) The outside developer should have experience in the company's industry.
C) The outside developer should possess a good understanding of business in general.
D) The outside developer should be able to complete the system independently, without requiring frequent contact to ask questions.

Question 29

What guidelines should be followed when contracting with an outside developer to create custom software?

Question 30

According to Deloitte & Touche,most chief information officers

A) do not expect to replace their current information systems.
B) prefer to replace their current information systems.
C) expect to replace their current information system(s) with commercially available packages.
D) expect to replace their current information system(s) with packages developed in-house.

Question 31

Identify the ways an organization can gain full advantage of using a Request For Proposal (RFP).

Question 32

There are frequently many canned software packages are available.However,many companies choose to develop their own software.Why?

A) An organization may have unique requirements that are not addressed by canned software packages.
B) Canned software packages are often less expensive than software developed in house.
C) The organization's size and complexity necessitates the in-house development of software.
D) A and C above are correct.

Question 33

Discuss how an organization can develop custom software.

Question 34

Identify one of the benefits associated with procuring software from application service providers.

A) lower cost
B) scalability
C) greater effectiveness
D) faster processing speed

Question 35

When an organization seeks to modify canned software,it is best when ________ because unauthorized modifications may make the program unreliable.

A) the vendor modifies the software
B) a firm changes its business processes, not the software
C) only programmers with software experience modify the software
D) all of the above

Question 36

Moneka Jones is the CIO for Noela Incorporated.Moneka wants to replace the firm's existing system,but wants to leave the technical issues to the vendor because she is not well-informed on the latest technologies.When preparing an RFP,Moneka most likely should

A) disclose exact hardware and software specifications.
B) disclose specific performance objectives and requirements.
C) disclose general software requirements.
D) disclose general performance objectives and requirements.

Question 37

Who is typically responsible for installing turnkey systems?

A) an organization's IT department
B) the vendor who provides the system
C) a third-party hired by the system vendor
D) Nobody. Turnkey systems install themselves.

Question 38

What are the advantages and disadvantages of custom software and of canned software for meeting application software needs?

Question 39

Describe the difficulties that could be encountered when developing an AIS.

Question 40

________ are one example of a cloud computing solution.

A) Application service providers
B) Turnkey vendors
C) SDLC implementations
D) Canned software providers

Question 41

Which of the following is not an appropriate task end users to perform?

A) performing statistical analyses
B) preparing schedules and lists
C) retrieving information from databases
D) updating database records

Question 42

What is the basic function of a help desk?

A) control access to corporate data
B) provide technical maintenance and support
C) train end users and assist with application development
D) All of the above are basic functions of a help desk.

Question 43

Although Gillette uses canned software in its business operations,it does so with the intention of creating a competitive advantage.Identify how Gillette aims to gain a greater competitive advantage from using canned software.

A) from deciding how the software should be used
B) from deciding what software should be used
C) from the cost savings it gains by using canned software
D) from the reduced training associated with canned software

Question 44

End-user development is inappropriate for which types of systems?

A) systems that process a large number of transactions
B) systems that need to be developed rapidly
C) systems that must be easy to use
D) organizations that have large IT departments

Question 45

Which of the following about end-user computing is true?

A) System users know best what they need, so should be able to create their own applications.
B) End-users, while knowledgeable about their job, are not trained to create systems applications, and should not be allowed to do so.
C) It is inefficient and costly to ask the IS department to create basic applications that only a few users need to use.
D) In most companies, the IS department doesn't want end-users to create their own applications, for fear IS won't have enough work to do.

Question 46

Identify the system below that end users should not be allowed to develop.

A) a payroll processing program
B) a program that performs "what-if" statistical modeling
C) developing an application using prewritten software such as a spreadsheet or database system
D) preparing a schedule or list such as a depreciation schedule

Question 47

Identify the system below that is likely to be most appropriate for end-user development.

A) an accounts receivable system
B) a general ledger system
C) an inventory system
D) a loan amortization spreadsheet program

Question 48

Who should maintain control of access to date in a user-created system with proper controls?

A) end-users
B) management
C) the IT department
D) a help desk

Question 49

________ refers to involving users in the development,control,and deployment of information systems.

A) Amateur user computing (AUC)
B) Competitive intra-organization systems development approach (CIOSDA)
C) End-user computing (EUC)
D) Novice information systems development (NISD)

Question 50

Where is the responsibility for the development of end-user computing applications typically placed?

A) end users
B) help desk
C) Information Technology Services Department
D) programmers

Question 51

The IT department should be given control of end-user computing (EUC).

Question 52

Identify one of the primary risks associated with end-user computing below.

A) IS personnel will not have enough work to do if users develop their own systems.
B) Systems that have not been adequately tested may be implemented.
C) System costs may skyrocket.
D) System development time may increase substantially.

Question 53

Describe end-user computing and the advantages and risks involved.

Question 54

End-user computing is likely to result in a(n)

A) well tested system.
B) well documented system.
C) rapidly developed system.
D) efficient system.

Question 55

Why does Pepsi create most of the software it uses in business operations?

A) Pepsi does not trust canned software.
B) Using canned software actually cost Pepsi more than using custom software.
C) Pepsi could not find canned software sophisticated enough to meet its needs.
D) There is no canned software available in Pepsi's industry.

Question 56

Why are end-user created systems often poorly documented?

A) Users often do not know how to document systems properly.
B) Users often consider systems documentation to be unimportant.
C) Users often believe it is too expensive to properly document systems.
D) Users are often unaware they need to properly document systems.

Question 57

End-user computing can eliminate many of the analyst-programmer communication problems associated with the traditional program development.

Question 58

If recent trends in end-user computing (EUC)persist,EUC will represent ________ of all information processing by the end of 2020.

A) 15% - 24%
B) 20% - 49%
C) 50% - 74%
D) 75% or more

Question 59

Describe the purposes of a help desk.

Question 60

A second-line help desk operator would most likely

A) handle complicated queries requiring research.
B) provide callers with scripted answers.
C) use expert systems to quickly find answers.
D) None of the duties listed above pertain to second-line help desk personnel.

Question 61

According to a survey discussed in your textbook,what percentage of outsourcing experiences have been labeled as "disasters" by company executives?

A) 5%
B) 17%
C) 33%
D) 50%

Question 62

In which of the following cases is outsourcing likely to be the best solution to the firm's data processing needs?

A) Peterson International is a trenchcoat wholesaler to retailers around the world. Sixty percent of sales orders are taken during the months of August and September. Peterson needs a system to manage online ordering and fulfillment.
B) Battlegoat Investment Strategies manages investors' portfolios and provides services to wealthy customers. The firm needs a system that will pull together selected investment data from a variety of sources and that allows account managers to prepare customized reports.
C) Yachtman Limited is in the business of buying businesses, managing them for a few years, then selling them for a profit. The firm requires a flexible system that will allow it to manage the types of businesses it controls.
D) Desalinas LLC, manages the construction of desalinization plants. It needs a system that will allow it to manage the construction process from bid to billing.

Question 63

Benathir Donathat,director of the project committee,has received approval from management for implementation of a new accounting information system.After putting out an RFP,the committee settled on a Web-based application service provider that will manage all hardware and software required by the system,with fees based on usage.The committee decided to go with

A) canned software.
B) a turnkey system.
C) an outsourced system.
D) an end-user developed system.

Question 64

WorldWide Supermarket,a grocery store with 5,000 locations around the world surprised financial markets by announcing that it was selling all of its computers to CompuService and hiring the firm to operate and manage the supermarket's system.WorldWide Supermarket just engaged in which type of outsourcing agreement?

A) a locked-in agreement
B) a mainframe agreement
C) a client/server agreement
D) a cloud computing agreement

Question 65

Sabella Cycles declared bankruptcy in 2013 and has since closed 5 outlets,or approximately 25% of its locations.Sabella needs to reduce the costs of operating the firm's information systems.To accomplish this,Sabella might decide to

A) replace the existing system with one of a smaller scale.
B) customize the existing system.
C) outsource system operations.
D) purchase a canned software system.

Question 66

The unauthorized disclosure of sensitive information is an example of what risk associated with outsourcing?

A) a locked-in system
B) a loss of control
C) a reduced competitive advantage
D) inflexibility

Question 67

The risk of losing a fundamental understanding of a company's AIS needs and the strategic users of an AIS as a result of outsourcing is referred to as

A) focus reduction.
B) loss of control.
C) reduced competitive advantage.
D) unfulfilled goals.

Question 68

Which of the following is not true about business process management (BPM)and enterprise resource planning (ERP)systems?

A) ERP systems encompass all functions and processes in an organization, but BPM systems are implemented at process or unit levels in an organization.
B) BPM systems are process-centered, but ERP systems are data-centered.
C) Organizations can use both ERP and BPM systems at the same time.
D) ERP and BPM systems rely heavily technology for communication and coordination.

Question 69

Which of the following is not an element of managing a business process "end to end"?

A) identifying process experts to oversee specific functions across units
B) designating a process owner
C) setting performance standards
D) establishing control and monitoring processes

Question 70

Describe outsourcing and identify the two types of outsourcing agreements.

Question 71

Why might outsourcing cause employee resistance?

A) Outsourcing often allows a company to better use its assets and scarce resources.
B) Outsourcing can lower a company's overall IS costs.
C) Outsourcing often facilitates downsizing.
D) Outsourcing helps eliminate the peaks and valleys of system usage.

Question 72

Business Process Management views business processes as

A) strategic organizational assets.
B) a series of small tasks to be closely managed.
C) related activities that, once perfected, should be managed on an exception basis.
D) subsets of organizational strategy that should not be owned by any specific person or department.

Question 73

Which of the following is not a benefit of outsourcing?

A) access to greater expertise and more advanced technology
B) greater control
C) improved development time
D) lower costs

Question 74

Discuss how information system outsourcing can provide the organization with both a business solution and asset management.

Question 75

Business process management (BPM)evolved from business process reengineering (BPR)because BPR had such a high success rate that firms wanted to expand it to cover all aspects of a firm's business process operations.

Question 76

Describe each of the four important principles underlying Business Process Management (BPM).

Question 77

Which of the following is not one of the ways in which a Business Process Management System can improve internal control?

A) Innovative technology allows access and authorization controls to be programmed at the transaction level.
B) Documents or transactions that require approval can be electronically routed to a manager.
C) Process rules are used to alert users when actions must be taken.
D) All actions and processes are monitored and documented in a process log for periodic review.

Question 78

Which or the following does not typically cause outsourcing failures?

A) lukewarm company buy-in
B) blind imitation of competitors
C) ill-defined outsourcing agreements
D) downsizing

Question 79

How does outsourcing improve an organization's utilization of assets?

A) by allowing a company to completely eliminate its IS department, which will reduce its payroll costs
B) by allowing the company to sell assets to outsourcers and improve their cash position
C) by eliminating the expense of keeping up with the latest technology and, thus, eliminate the drain on cash reserves
D) Both B and C above are correct.

Question 80

All of the following are reasons a company might choose to outsource its systems operations and maintenance except

A) increased flexibility.
B) increased innovation.
C) reduce costs.
D) foster competition.