Accounting Information Systems, 12e (Romney/Steinbart)
Chapter 21 AIS Development Strategies
1) Which statement below regarding the development of an AIS is false?
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) involves a make-or-buy decision.
B) is combined with the physical design phase.
C) is eliminated.
D) is the same.
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 be made.
B) is combined with the conceptual design phase.
C) is eliminated.
D) is the same as for developing custom software.
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) Software development companies write commercial software that can be used by a variety of
organizations. Sometimes these companies combine both software and hardware together to sell as one
package. Such a package is commonly referred to as
A) a turnkey system.
B) a value-added system.
C) an application service package.
D) canned software.
7) What is a major problem with “canned software”?
A) A commercial software development company has developed 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
timesavings, and avoid potential disagreements.
A) leasing
B) outsourcing
C) prototyping
D) sending out a request for a proposal
10) Total costs are usually lower, and less time is required for vendor preparation and company
evaluation, when requests for proposal are solicited based on
A) exact equipment needs.
B) generalized software needs.
C) specific hardware and software specifications.
D) None of the above are correct.
11) Information provided on a Request For Proposal given to vendors should include
A) a budget for software and hardware.
B) detailed specifications for the AIS.
C) timeframe required for completion of the project.
D) All of the above are correct.
12) The system performance evaluation approach that evaluates systems based on the weighted score of
criteria and points totaled is called
A) benchmark problem.
B) point scoring.
C) prototyping.
D) requirements costing.
13) The approaches to evaluating vendor proposals that do not incorporate dollar estimates of costs or
benefits are known as
A) benchmark problem and point scoring.
B) point scoring and requirement costing.
C) requirement costing and benchmark problem.
D) All methods mentioned above include dollar estimates.
14) A request for proposal sent to software vendors is an important tool since it can reduce errors.
Which statement below supports this reason?
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) A costly and labor-intensive approach to systems acquisition is creating
A) canned software.
B) custom software.
C) modified software.
D) turnkey software.
19) Which of the following is not appropriate for end user development?
A) performing statistical analyses
B) preparing schedules and lists
C) retrieving information from databases
D) updating database records
20) 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.
21) Why do so many organizations develop their own software, when many canned software packages
are available?
A) An organization may have unique requirements.
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.
22) Which of the following is not a guideline used to select an outside developer for custom system?
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.
23) What term is used to refer to users becoming involved in the hands-on development, control, and
employment 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)
24) End-user development is inappropriate for some types of systems. What is an example of a system
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
25) What is an important risk to be considered when allowing end users to develop a system?
A) IS personnel may not have enough work to do.
B) Systems are implemented that have not been adequately tested.
C) Systems are usually easy to use and modify.
D) Users control development process and decide what systems are created and implemented.
26) 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.
27) What would be one duty of second-line help desk personnel?
A) handling complicated queries requiring research
B) provide callers with scripted answers
C) using expert systems to quickly find answers
D) None of the duties listed above pertain to second-line help desk personnel.
28) 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.
29) 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
30) A company that has outsourced its AIS function can lose a fundamental understanding of its AIS
needs and the strategic uses of AIS with the passing of time. What is this risk called?
A) focus reduction
B) loss of control
C) reduced competitive advantage
D) unfulfilled goals
31) Which advantage of outsourcing, given below, may tend to cause resistance on the part of in-house
IS staff and other organization employees?
A) Outsourcing allows a company to better use its assets and scarce resources.
B) Outsourcing can lower a company’s overall IS costs.
C) Outsourcing facilitates downsizing.
D) Outsourcing helps eliminate the peaks and valleys of system usage.
32) The risk of outsourcing concerned with unauthorized disclosure of sensitive information is the risk
of
A) a locked-in system.
B) a loss of control.
C) a reduced competitive advantage.
D) inflexibility.
33) 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.
34) 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
35) 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.
36) 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.
37) The basic premise of ________ is that it is easier for people to express what they like or dislike
about an existing system than to imagine what they would like in a system.
A) modified software
B) outsourcing agreements
C) prototyping
D) turnkey systems
38) Which statement below regarding prototyping is false?
A) Prototypes are considered “first drafts,” which are quickly built and intended to be discarded when
the real system is finished.
B) Developers who use prototyping still go through the systems development life cycle.
C) Prototypes help developers and end users make conceptual and physical design decisions.
D) Prototyping allows developers to condense and speed up parts of the analysis and design phases.
39) What is the emphasis of the first step involved in developing a prototype?
A) develop a good prototype into a fully functional system
B) speed and low cost rather than efficiency of operation
C) users identify changes to be made in an iterative process
D) what output should be produced rather than how it should be produced
40) The development of which type of system listed below would not benefit from the creation of a
prototype?
A) decision support systems
B) executive information systems
C) expert systems
D) systems that cross a number of organizational boundaries
41) What is a disadvantage to prototyping?
A) developers may shortchange the testing and documentation process
B) errors are likely to be detected and eliminated early in the development process
C) prototyping may be less costly than other approaches
D) prototyping usually produces a better definition of user needs than other approaches
42) Which is not a problem with CASE technology?
A) cost
B) incompatibility
C) lack of system documentation
D) unmet expectations
43) Which of the following were CASE tools not designed to do?
A) replace skilled designers
B) plan, analyze, design, program, and maintain an information system
C) automate important aspects of the software development process
D) enhance the efforts of managers in understanding information needs
44) 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 vendor that will deliver all hardware and software required on a lease basis. The committee
decided to go with
A) canned software.
B) a turnkey system.
C) an outsourced system.
D) an end-user developed system.
45) 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.
46) 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 vendor that will provide an industry standard software package and post-sale technical
support. The committee decided to go with
A) canned software.
B) a turnkey system.
C) an outsourced system.
D) an end-user developed system.
47) 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.
48) 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.
49) 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
50) 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.
51) 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
52) Callow Youth Clothing (CYC) declared bankruptcy in 2007 and has since closed 27 stores, which
amounts to over half of its retail outlets. One of the conditions specified for emergence from bankruptcy
is a reduction in the cost of operating the firm’s accounting information system. Which of the following
may be recommended?
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.
53) Software as a Service (SaaS) refers to Web-based computing services provided by a(an)
A) application service provider (ASP).
B) Internet service provider (ISP).
C) end-user system (EUS).
D) help desk.
54) Firms should consider preparing a software prototype if the software
A) will be used for a critical function like accounts receivable.
B) automates an unstructured or semi-structured task.
C) can be produced using expertise available in-house.
D) is available as a canned package.
55) Firms should consider preparing a software prototype if the application
A) will be used for a critical function like inventory management.
B) automates a structured task.
C) can be produced using outside developers.
D) inputs and outputs are not clearly defined.
56) Which of the following is an advantage of CASE?
A) It exhibits a high degree of cross-system compatibility.
B) It is an inexpensive technology that is accessible to small businesses.
C) Documentation is generated automatically.
D) It enhances the congruence between user expectations and the final system.
57) As part of the development process for a new job bidding software system for Halide Construction,
LLC, Jon Chelide prepared and distributed diagrams that represent input and output screenshots. The
diagrams are an example of
A) CASE.
B) an operational prototype.
C) a RFP.
D) a nonoperational prototype.
58) As part of the development process for a new job bidding software system for Halide Construction,
LLC, Jon Chelide prepared and distributed functional programs that simulate the system’s input and
output interface. These programs are an example of
A) CASE.
B) an operational prototype.
C) a RFP.
D) a nonoperational prototype.
59) In which of the following cases is outsourcing likely to be the best solution to the firm’s data
processing needs?
A) Sad Clown Pajamas produces and wholesales clothing products to retailers worldwide. Eighty
percent of its sales orders are taken during the months of October and November. Sad Clown requires a
system that will manage online ordering and fulfillment.
B) Modest Expectations Investment Services manages highly diverse portfolios and provides personal
services to high income investors worldwide. The firm needs a system that will pull together selected
investment data from a large variety of sources and allow account managers to prepare customized
reports for customers.
C) J.D. Yacht is in the business of buying businesses, managing them for no more than two years, and
then selling them at a profit. The firm requires a flexible system that will allow them to effectively
manage the various types of businesses it controls.
D) Halide Construction, LLC, manages the design and construction of desalinization plants and requires
a system that will allow it to manage the process from bid to billing.
60) Describe the difficulties that could be encountered when developing an AIS.
61) What are the three methods to obtain a new information system? What is a turnkey system?
62) What guidelines should be followed when contracting with an outside developer to create custom
software?
63) Describe the purposes of a help desk.
64) Describe outsourcing and identify the two types of outsourcing agreements.
65) Describe computer-aided software (or systems) engineering (CASE) and identify the advantages and
disadvantages of CASE?
66) Explain the concept of an application service provider.
67) Identify the ways an organization can gain full advantage of using a Request For Proposal (RFP).
68) Discuss how an organization can develop custom software.
69) What are the advantages and disadvantages of custom software and of canned software for meeting
application software needs?
70) Describe end-user computing and the advantages and risks involved.
71) Describe prototyping and identify when prototyping is appropriate. Identify the steps involved in
prototyping. Discuss the advantages and disadvantages of prototyping.
72) Discuss how information system outsourcing can provide the organization with both a business
solution and asset management.
73) Describe each of the four important principles underlying Business Process Management (BPM).