Chapter 20

Accounting Information Systems, 12e (Romney/Steinbart)
Chapter 20 Introduction to Systems Development; Systems Analysis

1) A system change that results in an improved product or service and helps lower costs provided a(n)
A) competitive advantage.
B) improved business process.
C) productivity gain.
D) technological change.
Answer: A
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*) An anti+uated in!ormation system used by an o!!ice supply manu!acturer caused customer
dissatis!action since it too, two days to process a telephone order. A!ter the system was upgraded and
redesigned- the time to process a telephone order was reduced to three minutes. .his is a prime e/ample
o!
A) a competitive advantage.
B) a technological change.
C) an improved business process.
D) growth.
Answer: C
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2) 3hat is the correct se+uence o! the phases in the systems development li!e cycle4
A) conceptual design- physical design- system analysis- implementation and conversion- and operations
and maintenance
B) conceptual design- system analysis- physical design- implementation and conversion
C) system analysis- conceptual design- physical design- implementation and conversion- and operations
and maintenance
D) system analysis- physical design- conceptual design- and operations and maintenance
Answer: C
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9) 7n which phase o! the systems development li!e cycle are the broad needs o! the users converted into
detailed speci!ics that are coded and tested4
A) conceptual design
B) implementation and conversion
C) physical design
D) systems analysis
Answer: C
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") .he purpose o! systems analysis is to
A) identi!y the problem to be solved by the new (or redesigned) system and the causes o! the problem in
the current system.
B) determine design speci!ications !or the new (or redesigned) system.
C) communicate in!ormation needs to consider during business process reengineering.
D) discover any violations o! policies established by the in!ormation systems steering committee.
Answer: A
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:) 3hich o! the !ollowing statements about systems development is true4
A) Planning throughout the systems development li!e cycle promotes coordination between systems and
strategic plans.
B) %rgani;ations should conduct systems development activities at least once every !ive years.
C) .he systems development steps are critical !or pro!it<oriented businesses- but are too e/pensive and
time consuming !or most not<!or<pro!it organi;ations.
D) Diligently !ollowing the steps and suggestions in the systems development li!e cycle ensures the !inal
system will meet user needs and be implemented at or below the budgeted cost.
Answer: A
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0) 3hich o! the !ollowing about planning !or systems development is false4
A) Pro&ect plans are developed !or each new system and each system modi!ication- and together the
pro&ect plans comprise the master plan.
B) A pro&ect development plan includes an economic !easibility analysis and a schedule o! activities.
C) .he master plan identi!ies system goals- who will develop the system- and the resources that will be
needed.
D) .he master plan includes details about organi;ational goals- e/isting systems and resources- pro&ects
being conducted- and predictions o! !uture needs and re+uirements.
Answer: A
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#) 3hich o! the !ollowing activities is per!ormed during the systems development li!e cycle4
A) assessing the ongoing !easibility o! the pro&ect
B) managing the behavioral reactions to change
C) planning
D) All o! the above activities are per!ormed during the li!e cycle.
Answer: D
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1) 3hich group o! individuals listed below can be the most e!!ective in generating employee support
and encouraging the development and acceptance o! an A7) pro&ect4
A) accountants
B) in!ormation systems steering committee
C) management
D) pro&ect development team
Answer: C
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1$) 3ho o! the !ollowing is responsible !or ensuring that the new system will meet the needs o! users4
A) accountants
B) the in!ormation system steering committee
C) the pro&ect development team
D) the system analysts and programmers
Answer: D
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11) 3ho is responsible !or preparing the speci!ications that are used to create the programs4
A) management
B) programmers
C) systems analysts
D) the in!ormation systems steering committee
Answer: C
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1*) %ne step in the systems development li!e cycle ()D'C) identi!ies and evaluates design alternatives
and to develop design speci!ications. .his step is called
A) conceptual design.
B) implementation and conversion.
C) physical design.
D) systems analysis.
Answer: A
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12) 7n which step o! the )D'C do all o! the elements o! the system come together4
C) physical design
D) systems analysis
Answer: B
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19) 3hat is the role o! the in!ormation systems steering committee4
A) 7t is a team o! systems specialists- managers- accountants- and auditors that guides pro&ect
development.
B) )ince A7) development spans !unctional and divisional boundaries- an e/ecutive<level group is
established to plan and oversee the 7) !unction.
C) .he group ta,es an active role in designing system controls and periodically monitoring and testing
the system to veri!y the controls are implemented and !unctioning properly.
D) =one o! the descriptions above are appropriate.
Answer: B
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1") 3hich group o! pro!essionals is responsible !or planning and monitoring a pro&ect to ensure timely
and cost<e!!ective completion4
A) in!ormation systems steering committee
B) management
C) pro&ect development team
D) system analysts
Answer: C
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1:) All o! the !ollowing are bene!its o! planning and managing systems development except
A) controlling costs.
B) ensuring that the system is consistent with the organi;ation>s goals.
C) guaranteeing use o! the system.
D) helping ,eep the organi;ation abreast o! technological change.
Answer: C
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10) 7n which plan within planning systems development is the prioriti;ed list o! pro&ects contained4
A) pro&ect development plan
B) scheduled pro&ect plan
C) the master plan
D) all o! the above
Answer: C
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1#) 3hat is the basic building bloc, o! in!ormation systems planning4
A) the master plan
B) the pro&ect development plan
C) systems analysis
D) adaptability
Answer: B
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11) A planning hori;on o! at least ???????? years is reasonable !or any master plan@ however- the plan
should be updated at least ???????? each year.
A) 2@ twice
B) "@ twice
C) 0@ once
D) "@ once
Answer: A
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*$) ???????? re+uires that all activities and the precedent and subse+uent relationships among them be
identi!ied.
A) CA)(
B) .he Aantt chart
C) .he P(. diagram
D) .he )D'C cycle
Answer: C
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*1) A networ, o! arrows and nodes representing pro&ect activities that re+uire an e/penditure o! time
and resources and the completion o! initiation o! activities- respectively- is called
A) a Aantt chart.
B) a P(. diagram.
C) a )D'C cycle.
D) CA)(.
Answer: B
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**) 3hich planning techni+ue does not show the relationships among various activities4
A) Aantt chart
B) P(.
C) the critical path method
D) BA=
Answer: A
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*2) 7n which phase o! the systems development li!e cycle is the !easibility study !irst per!ormed4
C) physical design
D) system analysis
Answer: D
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*9) A !ederal law demands that certain in!ormation about !oreign customers should be maintained in the
in!ormation system. 7n which part o! a !easibility study should this re+uirement be considered4
A) economic !easibility
B) legal !easibility
C) operational !easibility
D) technical !easibility
Answer: B
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*") 3hich o! the !ollowing parts o! a !easibility study is generally considered the most important and is
!re+uently re<analy;ed4
A) economic !easibility
B) operational !easibility
C) scheduling !easibility
D) technical !easibility
Answer: A
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*:) 3hat is the basic model used to create a !ramewor, !or economic !easibility analysis4
A) the capital budgeting model
B) the cash budgeting model
C) the costCbene!it model
D) All o! the above models are used to create a !ramewor,.
Answer: A
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*0) 3hat is most di!!icult to +uanti!y when assessing economic !easibility4
A) bene!its
B) costs
C) Costs- bene!its- and the paybac, period are all o! e+ual di!!iculty.
D) the paybac, period
Answer: A
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*#) 3hen using the paybac, method to determine economic !easibility o! pro&ects- the company usually
accepts the pro&ect with the
A) longest paybac, period.
B) mid<range paybac, period.
C) paybac, period that is e+ual to the pro&ect>s economic li!e.
D) shortest paybac, period.
Answer: D
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*1) .here are several important aspects to be considered during a !easibility study. .he aspect that as,s
the +uestion- DCan people use the system and will they use it4D is called
A) economic !easibility.
B) operational !easibility.
C) scheduling !easibility.
D) technical !easibility.
Answer: B
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2$) Accountants can contribute to !easibility study analysis by evaluating cost savings and other bene!its
versus operating costs and other cash out!lows. .his is better ,nown as
A) the Dbest guessD model o! bene!it analysis.
B) the Dvalue addedD bene!it model.
C) the capital budgeting model.
D) the estimated bene!its model.
Answer: C
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21) .he capital budgeting techni+ue where estimated !uture cash !lows are discounted bac, to the
present is re!erred to as
A) the !uture value method.
B) the internal rate o! return.
C) the net present value method.
D) the paybac, method.
Answer: C
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2*) .he type o! user resistance in which data are erroneously entered into a system is called
A) acceptance.
B) aggression.
C) avoidance.
D) pro&ection.
Answer: B
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22) Continuing to use a manual system instead o! the new A7) is a !orm o! resistance ,nown as
A) acceptance.
B) aggression.
C) avoidance.
D) pro&ection.
Answer: C
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29) %ne behavioral problem occurs when there is insu!!icient e/planation o! why a change must ta,e
place. .his problem is a result o!
A) communication.
B) natural resistance to change.
C) the manner in which the change is introduced.
D) top management support o! change.
Answer: A
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2") 5a&or resistance to change ta,es one o! several !orms. 3hat is the name o! the !orm o! resistance
where the new system is blamed !or any and every unpleasant occurrence4
A) aggression
B) avoidance
C) procrastination
D) pro&ection
Answer: D
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2:) %ne behavioral problem occurs when there is insu!!icient e/planation o! why a change must ta,e
place. 7n order to curtail this resistance !rom occurring within the organi;ation- what guideline should be
implemented and !ollowed4
A) attempt to meet the users> needs
B) avoid emotionalism
C) ,eep communication lines open
D) ,eep the system simple
Answer: C
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20) A good rule to !ollow to prevent behavioral problems associated with implementing a new system is
DAvoid comple/ systems that cause radical changes.D 3hat e/pression is used to describe this system
design rule4
A) allay !ears and stress new opportunities
B) ,eep the system simple and humani;e it
C) control users> e/pectations
D) test the system
Answer: B
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2#) During what step in systems analysis is an e/amination made o! each development activity to de!ine
the problem to be solved4
A) in!ormation needs and systems re+uirements
B) the !easibility study
C) the initial investigation
D) the systems survey
Answer: C
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21) 3hen is a proposal to conduct a systems analysis prepared4
A) a!ter a written re+uest !or systems development is prepared
B) a!ter the development team completes the survey o! the e/isting A7)
C) a!ter the initial investigation o! the pro&ect is approved
D) be!ore the initial investigation
Answer: C
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9$) During which phase o! systems analysis does modeling o! the e/isting system occur4
A) in!ormation needs and system re+uirements
B) the !easibility study
C) the initial investigation
D) the systems survey
Answer: D
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91) 3hich data gathering method is most help!ul to deal with the +uestion: D3hy4D
A) interviews
B) observation by the analyst
C) +uestionnaires
D) system documentation
Answer: A
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9*) )igni!icant system changes were implemented two months ago. .he changes were well<planned-
well<designed- thoroughly tested be!ore and a!ter conversion- and several employee training sessions
were conducted. )till- the changes haven>t resulted in any productivity increases- cost savings- or process
improvements. 5anagement is pu;;led and needs to !ind out why the system isn>t success!ul. .he best
action !or management to ta,e is
A) conduct !ace<to<!ace interviews with managers- ,ey personnel- and randomly selected employees
!rom each !unctional area impacted by the system changes in an attempt to discover why the changes
aren>t e!!ective.
B) ma,e sure the system changes were well documented and review the documentation to see i! perhaps
some important !eature or process was overloo,ed during the design phase.
C) email a series o! +uestions to all employees- as,ing !or input about !urther changes that would bring
about the desired results.
D) advise employees that consultants will be conducting observation sessions over the ne/t two wee,s
to determine i! employees have !ully implemented changes and whether there is any evidence o!
resistance to the changes.
Answer: A
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92) 3hich method o! data gathering is most li,ely to result in in!ormation that represents the personal
biases and opinions o! the person giving the in!ormation4
A) a +uestionnaire
B) an interview
C) observation by the analyst
Answer: B
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99) 3hen the in!ormation is brie! and well de!ined- which is the best data<gathering approach to use4
A) a +uestionnaire
B) an interview
Answer: A
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9") 3hich is the best data<gathering approach to use when in!ormation must be obtained !rom many
di!!erent people4
A) a +uestionnaire
B) an interview
Answer: A
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9:) .he ???????? method o! gathering in!ormation helps to determine how a system actually wor,s.
A) interview
B) observation
C) +uestionnaire
Answer: B
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90) .he ???????? method o! gathering in!ormation helps to determine how a system should wor,.
A) interview
B) observation
C) +uestionnaire
Answer: D
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9#) 3hat are the best strategies !or determining system re+uirements4
A) analy;e e/isting systems- as, users what they need- prototyping- and monitoring
B) as, users what they need- analy;e e/isting systems- develop concept o! new system- and prototyping
C) as, users what they need- analy;e e/isting systems- e/amine e/isting system utili;ation- and
prototyping
D) as, users what they need- analy;e e/isting systems- e/amine e/isting system utili;ation- and develop
concept o! new system
Answer: C
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91) 3hen would a company go through a systems development li!e cycle4
A) only when ma&or changes are needed
B) only when minor changes are needed
C) Esually a company only goes through one complete systems development li!e cycle- a!ter which the
only phase that is repeated is the operations and maintenance phase.
D) whenever minor or ma&or changes are needed
Answer: D
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"$) 3hat report serves as a repository o! data !rom which systems designers can draw in!ormation4
A) the e/ecutive steering committee report
B) the initial investigation report
C) the systems analysis report
D) the systems survey report
Answer: C
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"1) 3hich group is responsible !or preparing a systems analysis report4
A) computer analysts
B) management
C) the pro&ect development team
D) the steering committee
Answer: C
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"*) 7n which systems analysis step do analysts conduct an e/tensive study o! the present system to gain
a thorough understanding o! how it wor,s4
A) !easibility study
B) in!ormation needs and re+uirements
C) systems analysis report
D) systems survey
Answer: D
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"2) .he +uestion o! what the pro&ect should and should not accomplish is determined in what step o!
systems analysis4
A) !easibility study
B) initial investigation
C) systems analysis report
D) systems survey
Answer: B
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"9) A 'ogical model used to gather in!ormation about an e/isting system
A) comes only a!ter a physical model o! the e/isting system is created.
B) describes how a system actually wor,s- rather than how it should wor,.
C) illustrates how a system !unctions by describing the !low o! documents and computer processes.
D) illustrates what is being done- regardless o! how that !low is actually accomplished.
Answer: D
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"") .he system ob&ective concerned that crucial in!ormation be produced !irst- and then less important
items as time permits is ,nown as
A) !le/ibility.
B) reliability.
C) timeliness.
D) use!ulness.
Answer: C
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":) A prototype
A) is e/pensive to create and is there!ore only created once user needs are well<de!ined.
B) is ma,ing an internal and e/ternal review o! the system to be analy;ed- noting that users may not use
the e/isting A7) as intended.
C) is typically created during the physical design phase o! systems development.
D) can be used to help users identi!y and communicate their system needs.
Answer: D
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"0) A pro&ect development team at 5idwest Construction was assigned the tas, o! improving the
e!!iciency o! the !irm>s accounting in!ormation system. As part o! the ???????? step in the systems
development li!e cycle- the team has determined that implementation o! the new system will yield an
internal rate o! return o! *9.#F.
A) systems analysis
B) operations and maintenance
C) implementation and conversion
D) conceptual design
Answer: A
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"#) A pro&ect development team at 5idwest Construction was assigned the tas, o! improving the
development li!e cycle- the team has determined that the ob&ectives o! the pro&ect can be accomplished
by installing a new computer system or by upgrading the e/isting system.
A) systems analysis
C) physical design
Answer: C
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"1) A pro&ect development team at 5idwest Construction was assigned the tas, o! improving the
development li!e cycle- the team has initiated an end user training program in preparation !or switching
over to the new system.
A) systems analysis
B) operations and maintenance
C) implementation and conversion
D) physical design
Answer: C
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1:
:$) A pro&ect development team at 5idwest Construction was assigned the tas, o! improving the
development li!e cycle- the team de!ined the procedures to bac, up and secure system data.
A) operations and maintenance
C) physical design
Answer: C
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:1) e!er to the diagram below- where the numbers ne/t to the arrows re!er to the number o! days
re+uired !or completion o! the corresponding activity. 3hat is the critical path4
A) A<B<D<G
B) A<C<(<G
C) A<B<D<(<G
D) A<C<B<D<G
() A<C<B<D<(<G
Answer: (
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:*) e!er to the diagram below- where the numbers ne/t to the arrows re!er to the number o! days
A) A<B<D<G
B) A<C<(<G
C) A<B<D<(<G
D) A<C<B<D<G
() A<C<B<D<(<G
Answer: B
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:2) e!er to the diagram below- where the numbers ne/t to the arrows re!er to the number o! days
A) A<B<D<G
B) A<C<(<G
C) A<B<D<(<G
D) A<C<B<D<G
() A<C<B<D<(<G
Answer: A
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:9) .hree months a!ter a new telephone system with voice mail was installed at 5odest (/pectations
College in Pennsylvania- several senior !aculty members were contacted by a telecommunications
secretary and were told that their voice mail bo/es were !ull. .his is an e/ample o! dealing with change
by
A) deterrence.
B) pro&ection.
C) avoidance.
D) aggression.
Answer: C
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:") )hortly a!ter a new automated +uality assurance system went online- production output declined by
three percent. .he production manager- a long time employee- blamed the new system. 8e argued that
Da!ter we laid o!! .om and Himmy and put this machine in- things &ust slowed down. =othing seems to
wor, right anymore.D .his is an e/ample o! dealing with change by
A) deterrence.
B) pro&ection.
C) avoidance.
D) aggression.
Answer: B
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::) %n 5arch 1#- *$$#- a newly installed robotic painting system bro,e down. A technician was called
to repair the system. )he !ound that a shoe had been shoved into the system>s innards. .his is an e/ample
o! dealing with change by
A) deterrence.
B) pro&ection.
C) avoidance.
D) aggression.
Answer: D
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:0) e!er to the table below- which shows the results o! paybac,- net present value- and internal rate o!
return analysis o! !our pro&ects. 3hich is pre!erred by the paybac, criterion4
A) Pro&ect A
B) Pro&ect B
C) Pro&ect C
D) Pro&ect D
Answer: A
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:#) e!er to the table below- which shows the results o! paybac,- net present value- and internal rate o!
return analysis o! !our pro&ects. 3hich is pre!erred by the net present value criterion4
A) Pro&ect A
B) Pro&ect B
C) Pro&ect C
D) Pro&ect D
Answer: D
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:1) e!er to the table below- which shows the results o! paybac,- net present value- and internal rate o!
return analysis o! !our pro&ects. 3hich is pre!erred by the internal rate o! return criterion4
A) Pro&ect A
B) Pro&ect B
C) Pro&ect C
D) Pro&ect D
Answer: A
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*$
0$) e!er to the table below- which shows the results o! paybac,- net present value- and internal rate o!
return analysis o! !our pro&ects. 3hich is pre!erred by the internal rate o! return criterion4
A) Pro&ect A
B) Pro&ect B
C) Pro&ect C
D) Pro&ect D
Answer: A
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01) e!er to the table below- which shows the results o! paybac,- net present value- and internal rate o!
return analysis o! !our pro&ects. 3hich is pre!erred by the net present value criterion4
A) Pro&ect A
B) Pro&ect B
C) Pro&ect C
D) Pro&ect D
Answer: A
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AAC)B: Analytic
0*) e!er to the table below- which shows the results o! paybac,- net present value- and internal rate o!
return analysis o! !our pro&ects. 3hich is pre!erred by the paybac, criterion4
A) Pro&ect A
B) Pro&ect B
C) Pro&ect C
D) Pro&ect D
Answer: D
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Di!!iculty : (asy
AAC)B: Analytic
*1
02) Dys!unctional employee behavior in response to implementation o! a new computeri;ed in!ormation
system is li,ely to be the result o!
A) poor human resource policies.
B) lac, o! communication and training.
C) wea, system controls.
D) inade+uate compensation policies.
Answer: B
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AAC)B: Analytic
09) .he least time<consuming method o! collecting data !or use in a systems survey is
A) observation.
B) interviews.
C) +uestionnaires.
D) reviewing system documentation.
Answer: C
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AAC)B: Analytic
0") 3hich o! the !ollowing is the most important and !re+uently analy;ed aspect o! a !easibility study4
A) (conomic !easibility
B) .echnical !easibility
C) 'egal !easibility
D) %perational !easibility
Answer: A
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AAC)B: Analytic
0:) 3hich o! the !ollowing aspect o! a !easibility study is concerned with meeting e/ternal reporting
re+uirements4
A) .echnical !easibility
B) 'egal !easibility
C) )cheduling !easibility
Answer: B
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Di!!iculty : (asy
AAC)B: Analytic
**
00) 3hich o! the !ollowing aspect o! a !easibility study is concerned with human resources4
A) .echnical !easibility
B) 'egal !easibility
C) )cheduling !easibility
Answer: D
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Di!!iculty : (asy
AAC)B: Analytic
0#) 7denti!y the main reasons why companies change e/isting systems4
Answer: Changes in user needs or business needs due to growth- consolidation- a merger- new
regulations- or changes in regional and global relationships. .echnological changes due to advances-
improvements- and lower costs. 7mprovement o! business processes to eliminate ine!!iciency.
Competitive advantage !rom increased +uality- +uantity- and speed o! in!ormation will result in an
improved product to be sold at a lower price. Productivity gains that automate clerical and repetitive
tas,s and decrease per!ormance time. %utgrowing old systems re+uires upgrades or the installation o!
completely new systems. Downsi;ing moving !rom main!rames to networ,ed PCs to get a better
priceCper!ormance ratio. )ystems age and need to be replaced.
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AAC)B: Analytic
01) 3ho ma,es up the pro&ect development team and what is the team>s purpose4
Answer: .he pro&ect development team includes systems specialists- managers- accountants- internal
auditors- and users. .he pro&ect development team>s duties include planning each pro&ect- monitoring it
to ensure timely and cost<e!!ective implementation- properly introducing changes a!ter considering the
human element- and communication with the top management and the steering committee at all steps in
the process.
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AAC)B: Analytic
#$) Describe the !ive phases o! systems analysis.
Answer: 7nitial investigation o! each development activity to de!ine the problem to be solved. )ystems
survey to study the present system and gain a thorough understanding o! how it wor,s. Geasibility study
with special !ocus on the economic !easibility o! the pro&ect. 7n!ormation needs and system re+uirements
which will identi!y the needs o! users and determine the ob&ectives o! the new system. )ystems analysis
report which provides management with the !indings o! the analysis phase. Deliver systems
re+uirements.
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AAC)B: Analytic
*2
#1) Describe the !our primary ob&ectives o! a systems survey conducted during systems analysis.
Answer: Analy;e e/isting operations- policies and procedures- and data and in!ormation !low to gain a
thorough understanding o! the current system including its strengths and wea,nesses. 5a,e a
preliminary assessment o! current and !uture processing needs- and determine both the e/tent and nature
o! the changes that are needed. Develop relationships with users and build coalitions to gain support !or
the A7). Collect data that identi!y user needs- conduct a !easibility analysis- and ma,e recommendations
to the management.
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AAC)B: Analytic
#*) 7denti!y and brie!ly discuss the points at which a DgoCno goD decision is made in the systems analysis
process.
Answer: .here are three points at which a DgoCno goD decision can be made during systems analysis.
.he !irst point is during the initial investigation- in which a decision will be made whether to conduct a
systems survey. .he second point is at the end o! the !easibility study- at which point a decision will be
made whether to proceed to the in!ormation re+uirement stage. .he third (and last) point is at the
completion o! the analysis phase- which is the point at which a decision is rendered about whether to
proceed to the design phase.
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AAC)B: Analytic
#2) Describe the physical design stage o! the systems development li!e cycle.
Answer: .he physical design stage o! the systems development li!e cycle ()D'C) is the third o! !ive
stages in the li!ecycle- coming a!ter the systems analysis and conceptual design stages. 7n this stage o!
the )D'C- input- output- and database attributes are designed- as well as various controls. Programs and
procedures are developed during this stage as well. A !inal part o! this stage is the delivery o! the
developed system- which will be !urther enhanced during the implementation and conversion stage o!
the )D'C.
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AAC)B: Analytic
#9) Describe the importance o! the master plan in systems development.
Answer: A master plan is a long<range planning document speci!ying the components o! the system-
how the system will be developed- who will do the developing- how resources will be ac+uired !or
development- and the direction the A7) will ta,e into the !uture. .he document should give a status o!
pro&ects already in process- prioriti;e them- describe criteria !or prioriti;ation and provide a timetable !or
their development. A master plan should span a time period o! three years- and it should be updated at
least two to three times each year.
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AAC)B: Analytic
*9
#") 7denti!y and discuss the role o! the groups that in!luence the development and implementation o! an
A7).
Answer: 5anagement support !rom management is crucial in success!ul development and
implementation o! an A7). Any actual or perceived lac, o! support !rom management may cause
s,epticism and a lac, o! Dbuy inD !rom employees. Accountants determine the user re+uirements and
communicate to system developers@ members o! the pro&ect development team@ design system controls
and monitor and test the system. Accountants can also help in assessing and trac,ing costs o! pro&ects.
7n!ormation systems steering committee a cross<!unctional- e/ecutive<level team that champions the
pro&ect and is responsible !or high<level support o! the pro&ect. )ets policies that govern A7) systems
analysts < study e/isting systems- design new ones- and prepare system speci!ications !or computer
programmers. )ystems programmers write computer programs based on speci!ications and
re+uirements created by the system analysts. (/ternal players customers- vendors- auditors- and
regulations !rom governmental entities in!luence design o! an A7).
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AAC)B: Analytic
#:) Describe economic !easibility analysis. 3hat techni+ues are used in economic !easibility analysis4
Answer: .he capital budgeting model is used as the !oundation !or economic !easibility analysis. 7n this
model- cost savings and other (even intangible) bene!its- as well as initial outlay costs- operating costs-
and other cash out!lows are +uanti!ied in terms o! dollars and cents. .he tangible and intangible bene!its
include cost savings@ improved customer service- overall increased productivity@ improved decision
ma,ing and data processing@ better management control@ and increased &ob satis!action and employee
morale. .he costs include: so!tware ac+uisition@ design@ programming@ testing@ documentation and
maintenance costs@ site preparation@ and human resource costs such as hiring- testing- and relocation.
.he capital budgeting model is used as a !ramewor, !or economic !easibility analysis. .he three
techni+ues that are used are: Paybac, period: .he number o! years !or the net savings to recover the
initial costs o! the investment is calculated. A pro&ect with the shortest paybac, period is pre!erable
under this method. =et Present Balue (=PB): A discount rate representing the time value o! money is
used to discount all !uture cash !lows to the present. .he initial outlay costs are deducted !rom
discounted cash !lows to obtain net present value. A positive =PB indicates !avorable economic
!easibility. 7nternal ate o! eturn (7): 7 is the e!!ective interest rate that results in an =PB o!
;ero. .his e!!ective interest rate is compared with a company>s desired rate o! return (sometimes it can
be the cost o! capital). A pro&ect with the highest 7 will be selected when this method is used !or
evaluation purposes.
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AAC)B: Analytic
*"
#0) Discuss the relative advantages and disadvantages o! the !our di!!erent methods !or gathering data
during a systems survey.
Answer: 7nterviews: Advantages o! this method include: answers to DwhyD +uestions@ a way to build
relationships@ analysts can easily probe and as, !ollow<up +uestions@ and analysts can build acceptance
!or the pro&ect. Disadvantages to interview include: time consumed- e/pense to conduct- and the
in!ormation given is sub&ect to personal biases and opinions o! those interviewed. Iuestionnaires: .he
advantages to using +uestionnaires are: anonymity !rom respondents can yield candid answers@ much
in!ormation can be obtained in a short time period@ they are generally ine/pensive@ and a +uestionnaire
gives the respondent time to thin, about answers- which may produce answers o! a high +uality.
Disadvantages include: lac, o! any !ollow up or probing on a personal level@ since the +uestionnaire is
anonymous- the analyst cannot clari!y +uestions@ sometimes +uestionnaires are viewed as impersonal-
and they may o!ten be ignored or not completed care!ully. %bservation: Advantages o! observation
include veri!ication o! how systems actually wor, and better understanding o! the system.
Disadvantages include: time consumed@ they are e/pensive and di!!icult to interpret- the observed people
may alter their behavior. )ystems Documentation. .he advantages o! system documentation are that
such documentation may provide a good description o! how the system should wor,- and generally
documentation is easy to read. .he disadvantages to system documentation are: that it can be time
consuming to obtain and analy;e@ it may not be available or it may be incomplete@ and it may not show
how system really wor,s i! it has not been maintained on a regular basis.
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AAC)B: Analytic
##) 7denti!y and describe the !ive types o! !easibility that must be considered throughout the system
development li!e cycle.
Answer: .hese !ive types o! !easibility are technical- operational- legal- scheduling- and economic.
.echnical !easibility as,s the +uestion o! whether the planned system can be developed and
implemented using the technology that e/ists today.
%perational !easibility !ocuses on the +uestion o! whether the organi;ation possesses the human
resources capable o! designing- implementing- and operating the proposed system- and whether people
can actually use the system and will use the system.
'egal !easibility deals with issues o! !ederal and state law compliance- administrative agency
regulations- and any contractual obligations the company may have.
.he !ocus o! scheduling !easibility is the +uestion o! whether the system can be developed and
implemented within the time allotted.
(conomic !easibility tac,les +uestions o! whether the system bene!its will outweigh the time- money-
and resources used to develop it. Capital budgeting models are used to evaluate the costs versus bene!its
o! a system. .he capital budgeting techni+ues o! a paybac, period- the net present value (=PB) o! cash
!lows- and the internal rate o! return (7) can be incorporated as part o! the economic !easibility
component o! the !easibility study.
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AAC)B: Analytic
*:
#1) 3hat are some o! the reasons why behavioral problems occur when a new A7) is introduced4
Answer: Personal characteristics and bac,ground o! the users involved or impacted by the change. .he
manner in which change is introduced may have greater impact than the actual change itsel!. (/perience
with prior changes that went poorly may ma,e employees wary o! new anticipated changes. Any lac, o!
top management support may raise an issue o! endorsement !or such changes. Communication can be a
problem when no e/planation is given to employees about a change. Biases and natural resistance to
change may occur due to emotional attachments to duties or cowor,ers. Disruptive nature o! the change
process can place additional burdens on wor,ers. People may have a !ear o! the un,nown and
uncertainty about accompanying changes.
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AAC)B: Analytic
1$) Gor each o! the !ollowing items- discuss which o! the !our data gathering methods would be most
appropriate and why.
a. (liciting 2$$ employees> opinions on a new incentive program to replace the current bonus program.
b. 7denti!ying how the credit approval process !or new customers is supposed to be conducted and by
whom.
Answer:
a. (liciting opinions !rom a large population on a potentially emotionally charged topic is best handled
with a +uestionnaire. Jou can as, the same +uestions !rom a large number o! employees@ you will get
candid responses- particularly i! you respect anonymity@ the +uestionnaire would be relatively +uic, and
ine/pensive to create and analy;e responses.
b. 7denti!ying how a process is supposed to be done is best handled by reviewing documentation about
the process. Glowcharts- data !low diagrams- process diagrams- &ob descriptions- organi;ational charts-
and training manuals would all provide in!ormation about the design o! the credit approval process.
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Accounting Information Systems, 12e (Romney/Steinbart)

Chapter 20 Introduction to Systems Development; Systems Analysis

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