Chapter 21 AIS Development Strategies: Accounting Information Systems, 12e (Romney/Steinbart)

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.
Answer: A
Page Ref: 613
Objective: Learning Objective 1
Difficulty : Easy
AACSB: Analytic
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.
Answer: A
Page Ref: 614
Difficulty : Easy
AACSB: Analytic
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.
Answer: A
Page Ref: 614
Difficulty : Easy
AACSB: Analytic
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.
Answer: D
Page Ref: 614
Difficulty : Easy
AACSB: Analytic
1
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
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.
Answer: C
Page Ref: 614
Difficulty : Easy
AACSB: Analytic
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.
Answer: A
Page Ref: 614
Difficulty : Moderate
AACSB: Analytic
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.
Answer: C
Page Ref: 614
Difficulty : Easy
AACSB: Analytic
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.
Answer: B
Page Ref: 614
Difficulty : Easy
AACSB: Analytic
2
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
Answer: D
Page Ref: 614
AACSB: Analytic
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.
Answer: C
Page Ref: 615
Difficulty : Easy
AACSB: Analytic
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.
Answer: B
Page Ref: 615
AACSB: Analytic
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.
Answer: B
Page Ref: 616
Difficulty : Easy
AACSB: Analytic
3
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.
Answer: B
Page Ref: 616
AACSB: Analytic
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.
Answer: C
Page Ref: 614
AACSB: Analytic
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.
Answer: C
Page Ref: 615
Difficulty : Easy
AACSB: Analytic
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
Answer: A
Page Ref: 616
AACSB: Analytic
4
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.
Answer: B
Page Ref: 616
AACSB: Analytic
18) A costly and labor-intensive approach to systems acquisition is creating

A) canned software.
B) custom software.
C) modified software.
D) turnkey software.
Answer: B
Page Ref: 617
Difficulty : Easy
AACSB: Analytic
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
Answer: D
Page Ref: 618
AACSB: Analytic
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.
Answer: D
Page Ref: 619
Difficulty : Difficult
AACSB: Analytic
5
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.
Answer: D
Page Ref: 617
Difficulty : Easy
AACSB: Analytic
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.
Answer: D
Page Ref: 617
AACSB: Analytic
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)
Answer: C
Page Ref: 617
Difficulty : Easy
AACSB: Analytic
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
Answer: A
Page Ref: 618
Difficulty : Easy
AACSB: Analytic
6
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.
Answer: B
Page Ref: 618
Difficulty : Easy
AACSB: Analytic
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.
Answer: A
Page Ref: 618
AACSB: Analytic
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.
Answer: A
Page Ref: 619
AACSB: Analytic
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.
Answer: D
Page Ref: 620
Difficulty : Easy
AACSB: Analytic
7
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
Answer: B
Page Ref: 621
AACSB: Analytic
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
Answer: C
Page Ref: 621
AACSB: Analytic
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.
Answer: C
Page Ref: 620
Difficulty : Easy
AACSB: Analytic
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.
Answer: B
Page Ref: 621
Difficulty : Easy
AACSB: Analytic
8
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.
Answer: A
Page Ref: 622
AACSB: Analytic
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
Answer: A
Page Ref: 622
AACSB: Analytic
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.
Answer: A
Page Ref: 622
AACSB: Analytic
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.
Answer: A
Page Ref: 622
AACSB: Analytic
9
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
Answer: C
Page Ref: 623
Difficulty : Easy
AACSB: Analytic
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.
Answer: A
Page Ref: 624
AACSB: Analytic
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
Answer: D
Page Ref: 623
Difficulty : Easy
AACSB: Analytic
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
Answer: D
Page Ref: 624
AACSB: Analytic
10
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
Answer: A
Page Ref: 625
Difficulty : Easy
AACSB: Analytic
42) Which is not a problem with CASE technology?

A) cost
B) incompatibility
C) lack of system documentation
D) unmet expectations
Answer: C
Page Ref: 626
Difficulty : Easy
AACSB: Analytic
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
Answer: A
Page Ref: 625
Difficulty : Easy
AACSB: Analytic
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.
Answer: B
Page Ref: 614
Difficulty : Easy
AACSB: Analytic
11
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.
Answer: C
Page Ref: 619
Difficulty : Easy
AACSB: Analytic
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.
Answer: A
Page Ref: 614
Difficulty : Easy
AACSB: Analytic
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.
Answer: B
Page Ref: 617
AACSB: Analytic
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.
Answer: C
Page Ref: 618
Difficulty : Easy
AACSB: Analytic
12
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
Answer: B
Page Ref: 616
AACSB: Analytic
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.
Answer: A
Page Ref: 616
Difficulty : Easy
AACSB: Analytic
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
Answer: A
Page Ref: 617
Difficulty : Easy
AACSB: Analytic
13
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.
Answer: C
Page Ref: 620
AACSB: Reflective Thinking
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.
Answer: A
Page Ref: 614
Difficulty : Easy
AACSB: Analytic
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.
Answer: B
Page Ref: 624
AACSB: Analytic
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.
Answer: D
Page Ref: 624
AACSB: Analytic
14
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.
Answer: C
Page Ref: 626
AACSB: Analytic
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.
Answer: D
Page Ref: 624
AACSB: Analytic
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.
Answer: B
Page Ref: 624
Difficulty : Easy
AACSB: Analytic
15
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.
Answer: A
Page Ref: 620
AACSB: Reflective Thinking
60) Describe the difficulties that could be encountered when developing an AIS.
Answer: Demand for development resources is very high and can backlog AIS projects for several
years. The development process can be lengthy. System developers may not understand the company's
business, and consequently the new system may not always meet user's needs. The time taken to develop
an AIS may make it obsolete when the new system is ready to launch. Users may not be able to
articulate their demands adequately, and therefore they may be dissatisfied with the finished product.
Changes to the AIS are difficult to make beyond a certain point, so the AIS remains in a state of
"perpetual development" and flux.
Page Ref: 613
AACSB: Analytic
61) What are the three methods to obtain a new information system? What is a turnkey system?
Answer: The three methods to obtain a new information system are purchasing new software,
developing software in-house (either by development staff or by the system end-users themselves), or
hiring an outside company to create a system. A turnkey system is a software and hardware package,
which is complete and ready to be used "at the turn of a key." Vendors for turnkey systems primarily
specialize in a particular industry.
Page Ref: 614
Difficulty : Easy
AACSB: Analytic
16
62) What guidelines should be followed when contracting with an outside developer to create custom
software?
Answer: Carefully select a developer by checking into references and inquiring about reputation and
past experiences from other organizations. Sign a contract with clearly defined areas of responsibility for
the developer. Plan and monitor each step by designing each step of the project in detail, and making
frequent checkpoints for monitoring the project. Maintain effective communication with the developer.
Control all costs and minimize cash outflow until the project has been completed and is accepted.
Page Ref: 617
Difficulty : Easy
AACSB: Analytic
63) Describe the purposes of a help desk.

Answer: A help desk consists of analysts and technicians that encourage, support, coordinate, and
control end-user activities. Some of the duties and activities of the help desk includes the following:
Hot-line assistance to solve problems. Clearinghouse for information, coordination, and assistance.
Training, maintenance, and support center for the software and hardware. Application development
assistance center. Approval point for development and implementation standards for hardware and
software purchases, documentation and application testing, and security issues. Controlling access to
corporate data by using access matrix controls, etc. Evaluating new end-user hardware and software
products.
Page Ref: 619
Difficulty : Easy
AACSB: Analytic
64) Describe outsourcing and identify the two types of outsourcing agreements.
Answer: Outsourcing is the hiring of an outside company to handle all or part of a company's data
processing activities. There are two main types of outsourcing agreements: Mainframe outsourcing and
Client/server or desktop outsourcing. Mainframe outsourcing is when the outsourcer buys the client's
equipment, hires the client's employees, and operates on the client's site or connects the system to
outsourcer's computer. Client/server or desktop outsourcing is when a particular service, segment of
business, function, or PC support is outsourced.
Page Ref: 619-620
AACSB: Analytic
65) Describe computer-aided software (or systems) engineering (CASE) and identify the advantages and
disadvantages of CASE?
Answer: CASE refers to an integrated package of computer-based tools that automate important aspects
of the software development process. CASE tools can be used to plan, analyze, design, program, and
maintain an information system. CASE tools do not replace skilled designers, but they provide effective
support for all phases of the SDLC. Advantages  Improved productivity, improved program quality,
cost savings, improved control procedures, and simplified documentation. Disadvantages 
Incompatibility, cost, and unmet expectations.
Page Ref: 625-626
AACSB: Analytic
17
66) Explain the concept of an application service provider.
Answer: An application service provider (or ASP) is a third-party provider of software to organizations.
An ASP is Web-based, providing delivery of software to its clients over the Internet. An organization
that uses an ASP "rents" the software, thus eliminating the tasks of buying, installing, and maintaining
the software. Among the advantages to using this approach as opposed to the outright purchase of
software is a reduction of software costs and administrative overhead, automated software upgrades,
scalability as the organization itself grows, global access to information, access to skilled IT personnel,
and ability to focus on core competencies rather than IT requirements.
Page Ref: 614
AACSB: Analytic
67) Identify the ways an organization can gain full advantage of using a Request For Proposal (RFP).
Answer: The more information an organization provides in its RFP, the better its chances are of
receiving a system that meets its requirements. It is important to include detailed specifications for the
new AIS, including required applications, inputs, outputs, files, databases, frequency and ways of
updating files and creating queries, and any unique characteristics or requirements. It is also essential
that the RFP distinguishes between what are mandatory requirements and what are "desirable but not
essential" requirements.
Page Ref: 615
AACSB: Analytic
68) Discuss how an organization can develop custom software.

Answer: Custom software can be developed and written in-house. Many organizations develop their
own software because their requirements are unique or their size and complexity necessitate the creation
of a custom package. Specific applications or functions can often be developed in-house by end-users.
End-users can use spreadsheet or database software programs to create reports, perform "what-if"
analysis, prepare depreciation schedules, or prepare budgets. Alternatively, third-party developers can be
contracted to develop custom software for an organization. Custom software should only be developed
when it results in a distinct, competitive advantage to the organization.
Page Ref: 617
AACSB: Analytic
69) What are the advantages and disadvantages of custom software and of canned software for meeting
application software needs?
Answer: Custom software: tailored to needs; potential competitive advantage; and better control over
the process: expensive; difficult to write; error prone; and time consuming. Canned software: easy to
acquire; fast to acquire; inexpensive; good documentation; updates are inexpensive; and can be tested:
not tailored to needs; not as efficient as custom software; does not develop in-house expertise in
creation; and developer may go out of business.
Page Ref: 614, 618
AACSB: Analytic
18
70) Describe end-user computing and the advantages and risks involved.
Answer: End-user computing is the hands-on development, use, and control of computer-based
information systems by users. The suitable applications are: Producing simple reports and answers to
one-time queries by accessing the company database. Sensitivity, statistical, or "what-if" analysis. Using
spreadsheets or database software to analyze data. Preparing schedules and lists such as depreciation
schedule, accounts receivable aging, and loan amortizations. User computing has seen an explosive
growth because: Users realized that computers can be used to meet more and more information needs.
Increased access to data created many new uses and needs for information. One prediction is that end-
user computing may account for 75% to 95% of all information processed in the near future. Advantages
of end-user computing: The user is involved in the creation, control, and implementation of the software;
systems tend to meet user needs; programs can be created timely; end-users creating programming can
free up IS resources; and programs tend to be versatile and easy to use. Disadvantages of end-user
computing: Logic and development errors; inadequately tested applications; inefficient systems; poorly
controlled and documented systems; systems incompatibilities; duplication of systems and data; and
wasted resources and increased costs.
Page Ref: 617-619
AACSB: Analytic
71) Describe prototyping and identify when prototyping is appropriate. Identify the steps involved in
prototyping. Discuss the advantages and disadvantages of prototyping.
Answer: Prototyping is the development of a simplified working model (prototype) of an information
system. It is a "first draft," that is quickly and inexpensively built and provided to users for testing.
Prototyping is appropriate if: There is uncertainty about the existing AIS. The questions to ask are
unclear. The final AIS is not clearly visualized. Speed is an issue. There is a high likelihood of failure.
The system is a decision support system, executive information system, expert system, or information
retrieval system. Suitable when the system involves experimentation and trial-and-error development.
Suitable when the system requirements evolve as the system is used. Prototyping is not appropriate if:
The system is large or complex and serves major organizational components or crosses a number of
organizational boundaries. Steps in developing a prototype: Identify basic system requirements based on
users' needs for what output should be produced. Develop initial prototype emphasizing speed and low
cost instead of efficiency of operation and demonstrate it for users. Make changes needed as identified
by users, may take several iterations. Develop and use the user-approved system. Advantages of
prototyping: Better definition of user needs. Higher user involvement and satisfaction; faster
development time; fewer errors; more opportunity for changes; and less costly to the organization.
Disadvantages of prototyping: significant user time; less efficient use of system resources; incomplete
system development; inadequately tested and documented systems; negative behavioral reactions; never-
ending development.
Page Ref: 623-625
AACSB: Analytic
19
72) Discuss how information system outsourcing can provide the organization with both a business
solution and asset management.
Answer: Many companies have come to view information system outsourcing as not merely an IS
solution but a true business solution. Outsourcing has become a plausible business solution because it
allows the organization to focus and put its concentration into its core competencies. This transfer of IS
responsibilities can be liberating to the organization, as it frees up more resources to devote to the
mainstay of its business efforts. The viewpoint is that a company should be allowed to do what it does
best; so the outsourcer is better at IS operations and management, while the organization is better in its
areas or core competencies. Many organizations treat outsourcers as business partners, working closely
to meet the strategic business objectives of the organization. An additional benefit of IS outsourcing is
asset management. Many organizations tie up millions of dollars in their IS efforts, and the attempt to
keep up with technological improvements can create a steady drain on cash reserves and other
organizational resources. One way to significantly improve an organization's cash position and reduce
annual expenses is to sell off IS assets, or lease them to the outsourcing organization. This can have
positive benefits for both the organization and outsourcing vendor as well, as it helps the organization
with cash and expense management, and can provide an outsource vendor with the equipment (and even
people) it needs to properly service its client.
Page Ref: 620
AACSB: Analytic
73) Describe each of the four important principles underlying Business Process Management (BPM).
Answer: Business processes can produce competitive advantages through innovative processes and
technology to respond to changing consumer, market and regulatory demands before competitors are
able to respond. Business processes must be managed end to end, meaning a process owner should
have responsibility to set performance standards, control and monitor processes, and communicate with
other functional units. Business processes should be agile, which emphasizes continuous improvement
and adaptability. Business processes must be aligned with organizational strategy and needs to be
effective and efficient.
Page Ref: 621-622
AACSB: Analytic
20

Chapter 21 AIS Development Strategies: Accounting Information Systems, 12e (Romney/Steinbart)

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Chapter 21 AIS Development Strategies: Accounting Information Systems, 12e (Romney/Steinbart)

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Accounting Information Systems, 12e (Romney/Steinbart)

Chapter 21 AIS Development Strategies

1) Which statement below regarding the development of an AIS is false?

7) What is a major problem with "canned software"?

8) Which statement is true regarding canned software and the SDLC?

18) A costly and labor-intensive approach to systems acquisition is creating

20) What is the basic function of a help desk?

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

27) What would be one duty of second-line help desk personnel?

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

38) Which statement below regarding prototyping is false?

42) Which is not a problem with CASE technology?

47) Firms should consider developing custom software only if

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

54) Firms should consider preparing a software prototype if the software

55) Firms should consider preparing a software prototype if the application

63) Describe the purposes of a help desk.

68) Discuss how an organization can develop custom software.

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