Accounting Information Systems, 13e (Romney/Steinbart)
Chapter 21 AIS Development Strategies
21.1 Describe how organizations purchase application software, vendor services, and hardware.
1) 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.
2) 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.
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.
4) 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.
5) 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.
6) 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.
7) 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.
8) 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.
9) 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
10) 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.
11) 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.
12) ________ 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
13) ________ 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.
14) 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.
15) 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.
16) 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
17) 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.
18) 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.
19) 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.
20) 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
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
22) 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.
23) Describe the difficulties that could be encountered when developing an AIS.
24) What are the three methods to obtain a new information system? What is a turnkey system?
25) Explain the concept of an application service provider.
26) Identify the ways an organization can gain full advantage of using a Request For Proposal
(RFP).
27) What are the advantages and disadvantages of custom software and of canned software for
meeting application software needs?
28) 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.
29) 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.
30) ________ are one example of a cloud computing solution.
A) Application service providers
B) Turnkey vendors
C) SDLC implementations
D) Canned software providers
31) 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
32) 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
33) 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.
34) 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.
21.2 Explain how information systems departments develop custom software.
1) Which approach systems acquisition is generally costly and labor-intensive?
A) canned software
B) custom software
C) modified software
D) turnkey software
2) 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.
3) 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.
4) 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.
5) What guidelines should be followed when contracting with an outside developer to create
custom software?
6) Discuss how an organization can develop custom software.
7) 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
8) 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.
21.3 Explain how end users develop, use, and control computer-based information systems.
1) 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
2) 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.
3) ________ 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)
4) 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
5) 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.
6) 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.
7) 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.
8) 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.
9) 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
10) Describe the purposes of a help desk.