Accounting Information Systems, 8e—Test Bank, Chapter 13
Chapter 13—Managing the Systems Development Life Cycle
TRUE/FALSE
1. The majority of the cost of a system is incurred in the new systems development phase of the life
cycle.
2. According to the text, a stakeholder is an end user of a system.
3. The objective of systems planning is to link systems projects to the strategic objectives of the firm.
4. The Systems Development Life Cycle (SDLC) concept applies to specific applications and not to
strategic systems planning.
5. An accountant’s responsibility in the SDLC is to ensure that the system applies proper accounting
conventions and rules and possesses adequate control.
6. In the conceptual design phase of the Systems Development Life Cycle (SDLC), task force members
are focused on selecting the new system design.
7. When determining the operational feasibility of a new system, the expected ease of transition from the
old system to the new system should be considered.
8. One-time costs include operating and maintenance costs.
9. When preparing a cost-benefit analysis, design costs incurred in the systems planning, systems
analysis and conceptual design phases of the Systems Development Life Cycle are relevant costs.
10. A tangible benefit can be measured and expressed in financial terms.
11. Instead of implementing an application in a single big-bang release, modern systems are delivered in
parts continuously and quickly
12. When the nature of the project and the needs of the user permit, most organizations will seek a pre–
coded commercial software package rather than develop a system in-house.
13. All of the steps in the Systems Development Life Cycle apply to software that is developed in-house
and to commercial software.
14. Mixing technologies from many vendors improves technical feasibility.
15. The first step in the SDLC is to develop a systems strategy
16. System maintenance is often viewed as the first phase of a new development cycle.
17. Project initiation is the process by which systems proposals are assessed for consistency with the
strategic systems plan and evaluated in terms of their feasibility and cost-benefit characteristics.
18. When the nature of the project and the needs of the user permit, most organizations will create the
system in-house rather than rely on a commercial package.
19. Existing (maintained) applications are the prototypes for their new versions.
20. Because of the robustness of modern technology, businesses today see infrequent changes in their IT
systems and much longer system life spans.
21. During the detailed feasibility study of the project, the systems professional who proposed the project
should be involved in performing the study.
22. Recurring costs include: hardware maintenance, software acquisition, software maintenance,
insurance, supplies, personnel costs.
23. The payback method is often more useful than the net present value method for evaluating systems
projects because the effective lives of information system tend to be short and shorter payback projects
are often desirable.
24. Intangible benefits are not physical, but can be measured and expressed in financial terms.
25. Legal feasibility identifies conflicts between the proposed system and the company’s ability to
discharge its legal responsibilities
MULTIPLE CHOICE
1. When studying the detailed feasibility of a new project
a.
prototyping does not affect the schedule feasibility analysis
b.
the need for user training will influence the schedule feasibility analysis
c.
protection from fraud and errors will influence the schedule feasibility analysis
d.
a cost-benefit review will affect the schedule feasibility analysis
2. Protection from inadvertent disclosures of confidential information is part of the detailed
a.
operational feasibility study
b.
schedule feasibility study
c.
legal feasibility study
d.
economic feasibility study
3. A cost-benefit analysis is a part of the detailed
a.
operational feasibility study
b.
schedule feasibility study
c.
legal feasibility study
d.
economic feasibility study
4. Examples of one-time costs include all of the following except
a.
hardware acquisition
b.
insurance
c.
site preparation
d.
programming
5. Examples of recurring costs include
a.
software acquisition
b.
data conversion
c.
personnel costs
d.
systems design
6. Site preparation costs include all of the following except
a.
crane used to install equipment
b.
freight charges
c.
supplies
d.
reinforcement of the building floor
7. The testing of individual program modules is a part of
a.
software acquisition costs
b.
systems design costs
c.
data conversion costs
d.
programming costs
8. When implementing a new system, the costs associated with transferring data from one storage
medium to another is an example of
a.
a recurring cost
b.
a data conversion cost
c.
a systems design cost
d.
a programming cost
9. An example of a tangible benefit is
a.
increased customer satisfaction
b.
more current information
c.
reduced inventories
d.
faster response to competitor actions
10. An example of an intangible benefit is
a.
expansion into other markets
b.
reduction in supplies and overhead
c.
more efficient operations
d.
reduced equipment maintenance
11. A tangible benefit
a.
can be measured and expressed in financial terms
b.
might increase revenues
c.
might decrease costs
d.
all of the above
12. Intangible benefits
a.
are easily measured
b.
are of relatively little importance in making information system decisions
c.
are sometimes estimated using customer satisfaction surveys
d.
when measured, do not lend themselves to manipulation
13. Which technique is least likely to be used to quantify intangible benefits?
a.
opinion surveys
b.
simulation models
c.
professional judgment
d.
review of accounting transaction data
14. The formal product of the systems evaluation and selection phase of the Systems Development Life
Cycle is
a.
the report of systems analysis
b.
the systems selection report
c.
the detailed system design
d.
the systems plan
15. One time costs include all of the following except
a.
site preparation
b.
insurance
c.
programming and testing
d.
data conversion
16. Recurring costs include all of the following except
a.
data conversion
b.
software maintenance
c.
insurance
d.
supplies
17. All of the following are reasons why new systems fail except
a.
the user is not involved in the development of the system
b.
system requirements are not clearly specified
c.
systems analysts rely on prototyping models
d.
system development techniques are ineffective
18. The systems steering committee is responsible for all of the following except
a.
assigning priorities
b.
determining whether and when to terminate systems projects
c.
analyzing the technical feasibility of the project
d.
budgeting funds for systems development
19. Strategic systems planning is important because the plan
a.
provides authorization control for the Systems Development Life Cycle
b.
will eliminate any crisis component in systems development
c.
provides a static goal to be attained within a five-year period
d.
all of the above
20. Project feasibility includes all of the following except
a.
technical feasibility
b.
conceptual feasibility
c.
operational feasibility
d.
schedule feasibility
21. The degree of compatibility between the firm’s existing procedures and personnel skills and the
requirements of the new system is called
a.
technical feasibility
b.
operational feasibility
c.
schedule feasibility
d.
legal feasibility
22. The ability of a system to protect individual privacy and confidentiality is an example of
a.
schedule feasibility
b.
operational feasibility
c.
legal feasibility
d.
economic feasibility
23. The systems project proposal
a.
provides management with a basis for deciding whether or not to proceed with the project
b.
supplies an input to the project planning activity
c.
links the objectives of the proposed system to the system’s scheduling requirements
d.
prioritizes the proposal in relation to other system proposals
24. Which step is not used to evaluate a systems proposal? An analysis of the project’s
a.
feasibility factors
b.
ability to eliminate nonessential activities and costs
c.
ability to provide a competitive advantage to the firm
d.
use of Computer Aided Software Engineering (CASE) tools in developing the system
proposal
25. Reasons that a new systems implementation may be unsuccessful include all of the following except
a.
organizational restructuring required by the new system results in displaced workers
b.
end users do not understand the strategic merits of the new system
c.
employees are not trained to use the system
d.
system development team members include representatives from end-user departments
26. Typically a systems analysis
a.
results in a formal project schedule
b.
does not include a review of the current system
c.
identifies user needs and specifies system requirements
d.
is performed by the internal auditor
27. A disadvantage of surveying the current system is
a.
it constrains the generation of ideas about the new system
b.
it highlights elements of the current system that are worth preserving
c.
it pinpoints the causes of the current problems
d.
all of the above are advantages of surveying the current system
28. Systems analysis involves all of the following except
a.
gathering facts
b.
surveying the current system
c.
redesigning bottleneck activities
d.
reviewing key documents
29. The systems analysis report does not
a.
identify user needs
b.
specify requirements for the new system
c.
formally state the goals and objectives of the system
d.
specify the system processing methods
30. After the systems analysis phase of the System Development Life Cycle (SDLC) is complete, the
company will have a formal systems analysis report on
a.
the conceptual design of the new system
b.
an evaluation of the new system
c.
users’ needs and requirements for the new system
d.
a comparison of alternative implementation procedures for the new system
31. The accountant’s role in systems analysis includes all of the following except
a.
specify audit trail requirements
b.
prepare data gathering questionnaires
c.
suggest inclusion of advanced audit features
d.
ensure mandated procedures are part of the design
32. The role of the steering committee includes
a.
designing the system outputs
b.
resolving conflicts that arise from a new system
c.
selecting the programming techniques to be used
d.
approving the accounting procedures to be implemented
33. Project planning includes all of the following except
a.
specifying system objectives
b.
preparing a formal project proposal
c.
selecting hardware vendors
d.
producing a project schedule
34. Aspects of project feasibility include all of the following except
a.
technical feasibility
b.
economic feasibility
c.
logistic feasibility
d.
schedule feasibility
35. Which of the following is not a tool of systems analysts?
a.
observation
b.
task participation
c.
audit reports
d.
personal interviews
36. When developing the conceptual design of a system,
a.
all similarities and differences between competing systems are highlighted
b.
structure diagrams are commonly used
c.
the format for input screens and source documents is decided
d.
inputs, processes, and outputs that distinguish one alternative from another are identified
37. The role of the accountant/internal auditor in the conceptual design phase of the Systems Development
Life Cycle includes all of the following except
a.
the accountant is responsible for designing the physical system
b.
the accountant is responsible to ensure that audit trails are preserved
c.
the internal auditor is responsible to confirm that embedded audit modules are included in
the conceptual design
d.
the accountant is responsible to make sure that the accounting conventions that apply to
the module are considered by the system designers
SHORT ANSWER
1. Why is it important that the systems professionals who design a project not perform the detailed
feasibility study of the project?
2. List at least three one-time costs and three recurring costs in system development.
Accounting Information Systems, 8e—Test Bank, Chapter 13
3. ____________________ benefits can be measured and expressed in financial terms, while
____________________ benefits cannot be easily measured and/or quantified.
4. What is a systems selection report?
5. Why is the payback method often more useful than the net present value method for evaluating
systems projects?
6. Contrast reactive and proactive management styles.
7. Explain why accountants are interested in the legal feasibility of a new systems project.
8. Explain an advantage of surveying the current system when preparing a systems analysis for a new
systems project.
9. What are two purposes of the systems project proposal?
10. List two ways that a systems project can contribute to the strategic objectives of the firm.
11. List four types of facts that should be gathered during an analysis of a system.
12. What is the internal business process perspective?
13. What is the learning and growth perspective?
14. When a company is doing financially well, why is the customer perspective measure important?
15. Distinguish between escapable and inescapable costs. Give an example.
16. Why is cost-benefit analysis more difficult for information systems than for many other types of
investments organizations make?
17. What does assessing user feedback involve?
Accounting Information Systems, 8e—Test Bank, Chapter 13
ESSAY
1. Explain the five stages of the systems development life cycle?
2. What is the balanced scorecard?
3. Define the feasibility measures that should be considered during project analysis and give an example
of each.
4. Explain the role of accountants in the conceptual design stage.
5. Contrast the feasibility study performed in the systems analysis phase of the Systems Development
Life Cycle (SDLC) with the study performed in the systems selection phase of the SDLC.
6. Explain why the Systems Development Life Cycle is of interest to accountants. What is the
accountant’s role in the Systems Development Life Cycle?
7. What are three problems that account for most system failures?
8. What is industry analysis and why do managers do it?
Accounting Information Systems, 8e—Test Bank, Chapter 13
9. Why is the announcement of a new systems project so critical to project success?
10. Contrast the preliminary project feasibility study with the feasibility study performed in the systems
evaluation and selection phase of the SDLC.
11. Part of systems planning is a project feasibility study. Several feasibility issues can be raised. What are
they? Explain the key concerns.
12. Explain the role of accountants in the conceptual design stage.
13. Classify each of the following as either a one-time or recurring costs:
training personnel
initial programming and testing
system design-one
hardware costs
software maintenance costs
site preparation
rent for facilities
data conversion from old system to new system
insurance costs
installation of original equipment
hardware upgrades
14. What is competency analysis and why do managers do it.