978-1118742938 Chapter 6 Part 2

Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman

SM 6.10

d) Having cashiers load the program when

the computer fails

e) Having the computer retrieve PC-

controlled sales when the computer

returns to operation

6-18. AAZ Consulting

making for a professional football team:

a) The system could be useful in maintaining up-to-the minute counts of attendance during

complimentary, etc.

b) The system would be able to take ticket orders for future games—an important capability

if seats for a certain future game were limited and there were several sales centers for

d) For all types of athletic teams, the system could help maintain current inventory records

for such critical items such as medical and athletic supplies that are needed by the team.

graduates when seeking new players, the system could provide current information about

each year’s available college graduates as well as future college graduates and their

6-19. GuessRight Consultants

This company has hired you to help it develop billing software. The answers to specific

questions are as follows:

1. The purpose of prototyping is to provide a mockup of a proposed information system

also help users improve it.

2. A prototype may never become a real system, just as a prototype of an automobile or

airplane might never become a real car or airplane. This might be because viewers might

SM 6.11

items are too high.

3. The advantages of prototypes to end users include an early exposure to software systems

and the ability to affect the subsequent development of a system that is more to their

Advantages and disadvantages to managers include these same items, plus perhaps the

ability to ask about operational capabilities. One advantage of prototypes to system

interview end users about them.

6-20. Cook Consultants

its system, there is a strong likelihood that various problems may occur. “Direct conversion”

means that the old system will be discontinued immediately after the new system is implemented.

Under parallel conversion, both the old system and the new system operate simultaneously for a

systems implementation schedule.

6-21. This problem asks students to find statistics on the Bureau of Labor Statistics website

at www.bls.gove/ooh. According to this site, the median pay for “accountants and auditors” for

average growth expected for all jobs (and the rate of growth expected for accountants). These

statistics do not consider “opportunities for advancement” to other jobs, which are probably

higher for entry-level accounting than software-developer positions.

SM 6.12

6-22. A preliminary Investigation

creep,” and certainly points out the difference between in-class theory and real-world practice.

As a practical matter, however, instructors should urge their students to look at very simple

systems in very small companies.

6-23. Understanding PERT Charts

commence. Indirectly, activity J requires the completion of all the other activities before it

can begin.

14 weeks to complete, then activity F can begin at the beginning of week 15.

f. The two paths leading to activity G are AE (requiring 18 weeks) and BF (requiring 21

“32.” This means that the latest start time for activity J is at the end of week 32, or the

beginning of week 33.

week 27.

i. From part 6 of this problem we know that the earliest start time for activity G is the

beginning of week 22. From part 8 of this problem, we know that the latest start time for

5 weeks.

6-24. Understanding GANTT charts

weeks later (the end of week 28).

b. Activity I (“test computer software”) is scheduled to begin at the beginning of week 28 and

end 5 weeks later (the end of week 32).

SM 6.13

e. Activity E (“acquire and install computer equipment”) can only begin after the company

completes activity A. Because the company was able to complete activity A early (in 11

can actually begin at the start of week 15.

Case Analyses

1. Four advantages of mainframe computer systems are:

 The available speed, power, and memory needed to perform the largest, most complex

computer and files simultaneously

 The mainframe programs, partially because they have existed for a long time, are

debugged, and, therefore, cheaper than new microcomputer software

uniformity

Four disadvantages of mainframe computer systems are:

 Such systems may not be user friendly

expensive IT staff

 There may be time delays in developing and implementing new systems as the programs

are complex

available

These advantages and disadvantages are likely to also apply to other manufacturing

companies.

2. Factors and/or activities that prolong the lives of mainframe computer systems are:

 Systems that were originally developed in-house have now been debugged and work

properly

SM 6.14

are:

 These companies have enormous investments in mainframe platforms that would have to

be written-off on the financial statements

microcomputers

Again, these factors are also likely to apply to other manufacturing companies.

3. Five advantages of microcomputer/client-server systems are:

 They are more user-friendly, thus, making it easy for employees to use

time

 Many software applications are available in the marketplace

Two disadvantages of microcomputer/client-server systems are:

server, and data files

 Personnel are tempted to use microcomputer work stations for personal purposes

6-26. Wright Company (Analyzing System Reports)

positive contribution toward the company‘s operating efficiency.

1. Indicate whether each of the four reactions cited in the text contribute positively or negatively

to the Wright Company’s operating effectiveness.

dysfunctional behavior.

2) Generating too many reports or generating so many of them that managers take the wrong

SM 6.15

action is dysfunctional.

4) Seeking information from external sources can be both functional and dysfunctional.

functional response to the problem.

2. For each negative reaction, recommend alternative procedures that the Wright Company can

employ.

up systems study committee composed of both systems staff and users should be established

to review the present system and to interview users about their information needs and uses of

the system’s outputs.

should be reviewed periodically to make sure it is functioning smoothly and to make

necessary corrections.

6-27. Viva Vacations (A Systems Study for a Time Share Rental Agency)

This case is about a company that sells time shares and handles both short- and long-term

vacation rentals for its clients. It currently keeps manual records, but the owner is considering

implementing a computerizing system. Suggested answers for the various requirements are as

follows:

1. It is important for Chad to understand that a careful systems analysis of his current system

and future needs is a best-practice approach. For example, a review of his current system

Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman

SM 6.16

mathematical and clerical errors are likely.

Information that the study team might gather in the systems analysis phase might include

(1) the general goals of the system, top management (Chad’s) goals for the system, and

the goals/desires of employees using the system, (2) documentation about how the current

2. This part of the case requires the computation of a present value, but an interest rate is

purposely not provided. Students must decide what would be a reasonable rate.

Illustrative computations on a spreadsheet are:

compel the owner to pursue this project anyway?

3. This question asks students whether it is ethical for a software developer to pay you a

“fee” for finding a customer, and also whether it is ethical for you recommend an inferior

especially about the second consideration.

Core Concepts of Accounting Information Systems, 13th Edition, by Simkin, Rose, and Norman

SM 6.17

at a lower rate than first understood, thereby solving the dilemma encountered in part 2.

6-29. Stephen Kerr Cosmetics (Point-Scoring Analysis)

Part I: Using Equal Weights

Fritz’s Ratings

Meg’s Ratings

Fritz’s Ratings

Meg’s Ratings

Equal

Vendor

Weights

A

B

A

B

A

B

A

B

Required

Modifications

0.2

3

2

3

0.6

0.4

0.6

Ease of Use

0.2

8

3

4

6

1.6

0.6

0.8

1.2

Internal

Controls

0.2

3

4

2

4

0.6

0.8

0.4

0.8

Flexibility

0.2

4

5

3

7

0.8

1

0.6

1.4

Vendor Support

0.2

7

5

3

9

1.4

1

0.6

1.8

5

3.8

3

5.8

Fritz prefers Vendor A; Meg prefers Vendor B

Part 2: Using New Weights

Fritz’s Ratings

Meg’s Ratings

Fritz’s Ratings

Meg’s Ratings

Compromise

Vendor

Weights

A

B

A

B

A

B

A

B

Required

Modifications

0.2

3

2

3

0.6

0.4

0.6

Ease of Use

0.3

8

3

4

6

2.4

0.9

1.2

1.8

Internal

Controls

0.1

3

4

2

4

0.3

0.4

0.2

0.4

Flexibility

0.1

4

5

3

7

0.4

0.5

0.3

0.7

Vendor Support

0.4

7

5

3

9

2.8

2

1.2

3.6

6.5

4.2

3.5

7.1

Fritz still prefers Vendor A; Meg still prefers Vendor B

SM 6.18

Part 3: Using Average Ratings:

Fritz’s Ratings

Meg’s Ratings

Combined

Weights

Combined

Results

Compromise

Vendor

Weights

A

B

A

B

A

B

A

B

Required

Modifications

0.2

3

2

3

2.5

0.6

0.5

Ease of Use

0.3

8

3

4

6

4.5

1.8

1.35

Internal

Controls

0.1

3

4

2

4

2.5

4

0.25

0.4

Flexibility

0.1

4

5

3

7

3.5

6

0.35

0.6

Vendor Support

0.4

7

5

3

9

5

7

2

2.8

5

5.65

Vendor B has a slightly higher score now.

off-shore help desk support.