Unit 12
The relationship between online, real-time database systems and batch processing systems is that A firm will not use batch processing if it has a large computer. A firm will have only one processing mode because a single computer cannot do both. A firm may use both processing modes concurrently. A firm will always prefer an online, real-time processing system because batch processing is slow.
A firm may use both processing modes concurrently. Firms may find it beneficial to incorporate both processing modes into one system. A database may be established for information that must be obtained quickly, for instance, a sales processing system in which credit information must be available to sales personnel on an ongoing basis. However, other processing requirements may take advantage of the speed and control provided in a batch processing system. For example, payroll transactions may be processed quickly and efficiently in a batch mode.
Which of the following is the best example of the use of a decision support system (DSS)? An auditor uses a personal-computer-based word processing software package to modify an internal control questionnaire for a specific audit engagement. A manager uses a personal-computer-based simulation model to determine whether one of the company's ships would be able to satisfy a particular delivery schedule. An auditor uses a generalized audit software package to retrieve several purchase orders for detailed vouching. A manager uses the query language feature of a database management system (DBMS) to compile a report showing customers whose average purchase exceeds $2,500.
A manager uses a personal-computer-based simulation model to determine whether one of the company's ships would be able to satisfy a particular delivery schedule. A decision support system (DSS) assists middle- and upper-level managers in long-term, nonroutine, and often unstructured decision making. The system contains at least one decision model, is usually interactive, dedicated, and time-shared, but need not be real-time. It is an aid to decision making, not the automation of a decision process. The personal-computer-based simulation model is used to provide interactive problem solving (i.e., scheduling) assistance, the distinguishing feature of a DSS.
Which of the following best describes an enterprise resource planning (ERP) system? A system concerned with transactions with external parties reflected in financial statements. A system that automates many back-office functions. A system that combines all of an organization's systems into one. A subsystem of a management information system (MIS).
A system that automates many back-office functions. An ERP system is an integrated system that links multiple business activities across the enterprise. Subsystems share data and coordinate their activities. For example, when the information of sales, inventory, and shipping are linked, sales can quickly verify that there is sufficient inventory available and can have shipping process an order. Therefore, an ERP system is able to automate many back-office functions.
The fixed assets and related depreciation of a company are currently tracked on a password-protected spreadsheet. The information technology governance committee is designing a new enterprise-wide system and needs to determine whether the current fixed asset process should be included because the current system seems to be working properly. What long-term solution should the committee recommend? A. Continuing to use the current spreadsheet process because there have been no issues in this area. B. Purchasing a stand-alone fixed asset program for managing the assets and related depreciation. C. Developing a new fixed-asset system to manage the assets and related depreciation. D. Adopting the fixed-asset module of the new system for integration.
Adopting the fixed-asset module of the new system for integration. Adopting a fully integrated fixed-asset module for the new system is the best long-term solution.
Cloud computing can best be defined as a model that A. Streamlines business processes onto a well-secured and highly available in-house e-commerce platform to optimize customers' online experience. B. Allows organizations to use the Internet to access and use services and applications that run on remote third-party technology infrastructure. C. Is designed for rapid application deployment by making several virtual servers run on one physical host. D. Allows users to access network resources from remote locations through a virtual private network.
Allows organizations to use the Internet to access and use services and applications that run on remote third-party technology infrastructure. Cloud computing can be used for management and storage of both applications and data where all the software and data are stored via the Internet. It allows organizations to access services and applications that run on remote third-party hosts.
Big data and analytics is A. A process that systematically surveys and interprets relevant data to identify external opportunities and threats. B. A framework that analyzes the level of competition within an industry and business strategy development. C. A structured planning method that evaluates strengths, weaknesses, opportunities, and threats of a project or business venture. D. An analysis of structured, semi-structured, and unstructured data that c
An analysis of structured, semi-structured, and unstructured data that can be mined to reveal relationships and dependencies or to predict outcomes and behaviors. Big data and analytics is an evolving term that describes any voluminous amount of structured, semi-structured, and unstructured data that can be mined to reveal relationships and dependencies or to predict outcomes and behaviors.
An accounting information system (AIS) must include certain source documents in order to control purchasing and accounts payable. For a manufacturing organization, the best set of documents should include A. Purchase orders, receiving reports, and inventory reports of goods needed. B. Purchase requisitions, purchase orders, receiving reports, and vendor invoices. C. Purchase orders, receiving reports, and vendor invoices. D. Purchase requisitions, purchase orders, inventory reports of goods needed, and vendor
B. Purchase requisitions, purchase orders, receiving reports, and vendor invoices. An AIS is a subsystem of a management information system that processes financial and transactional data relevant to managerial and financial accounting. The AIS supports operations by collecting and sorting data about an organization's transactions. An AIS is concerned not only with external parties but also with the internal activities needed for management decision making at all levels. An AIS is best suited to solve problems when reporting requirements are well defined. A manufacturer has well-defined reporting needs for routine information about purchasing and payables. Purchase requisitions document user department needs, and purchase orders provide evidence that purchase transactions were appropriately authorized. A formal receiving procedure segregates the purchasing and receiving functions and establishes the quantity, quality, and timeliness of goods received. Vendor invoices establish the liability for payment and should be compared with the foregoing documents.
A large organization uses batch processing to process sales transactions. The system sorts sales transactions by customer number and performs edit checks when preparing invoices, processing payment information, recording journal entries, and updating customer account balances. Which of the following reports should be analyzed most frequently to ensure correct customer balances? A. An accounts receivable aging report. B. A report on the sales-price master file. C. Exception reports with control totals. D. A cash reconciliation report.
C. Exception reports with control totals. Under batch processing, transactions are accumulated and submitted for processing as a single "batch." The batch total is compared with the control totals to identify errors. Therefore, exception reports with control totals are the most frequently analyzed to ensure correct balances.
The current generation of ERP software (ERP II) has added front-office functions like Customer service. Human resources. Purchasing. Inventory control.
Customer service. The current generation of ERP software (ERP II) has added front-office functions. Customer relationship management applications in ERP II extend to customer service, finance-related matters, sales, and database creation and maintenance. Integrated data are helpful in better understanding customer needs, such as product preference or location of retail outlets. Thus, the organization may be able to optimize its sales forecasts, product line, and inventory levels.
Which one of the following distinguishes a management information system from a transaction processing system? A. Production of reports to support operations. B. Automation of routine transaction processing. C. Maintenance of a structured database. D. Capability to provide data for decision-making support.
D. Capability to provide data for decision-making support. A management information system (MIS) provides managers with the information they need for analysis, planning, control, and decision making. A transaction processing system (TPS) supports the ongoing routine operations of an organization.
The purchasing department buys cleaning compound from four different companies. The computerized purchasing system uses a decision table to select a vendor based on continually changing costs, delivery dates, and past experience. This is an example of a(n) Chargeback system. Parallel simulation. Expert system. Base case system evaluation.
Expert system. Expert systems are systems that emulate management decision rules and can learn as the environment changes. In this case, as suppliers change their terms and prices, the system will learn new combinations that minimize total order cost.
Which one of the following incorporates making the best decisions possible, using a logical approach by asking a series of questions, by using reasoning, and by allowing subjective inputs and outputs? Expert systems. Multi-networking. Teleprocessing. Decision support systems.
Expert systems. An expert system is software designed to perceive, reason, and understand. An expert system is an interactive system that asks a series of questions and uses knowledge gained from a human expert to analyze answers and come to a decision. The system is developed by using a continuous process of revision. As new knowledge or decision-making strategies become available, the information can be incorporated into the system.
Remote batch processing avoids the need for having Terminals at each user location. Input controls at each user location. File updating at each user location. Printers at each user location.
File updating at each user location. Batch processing is the accumulation and grouping of transactions for processing on a delayed basis. The batch approach is suitable for applications involving large volumes of similar items, e.g., payroll, sales, and inventory transactions. Remote batch processing (remote job entry) entails collection and entry of data from places other than the location of the file updating.
An enterprise resource planning system is designed to . . . Present executives with the information needed to make strategic plans. Allow nonexperts to make decisions about a particular problem. Help with the decision-making process. Integrate data from all aspects of an organization's activities.
Integrate data from all aspects of an organization's activities. An enterprise resource planning system is intended to integrate enterprise-wide information systems by creating one database linked to all of an organization's applications.
NEEM Co.'s monthly closing procedures include creating journal entries to account for cash collected at month end. The journal entries are captured by the system and converted into a special format from which the monthly financial report is generated and maintained in the database. This information system performs all of the major tasks except Storage. Maintenance. Output. Transformation.
Maintenance The four major tasks that any information system must perform are input, transformation, output, and storage. Creating journal entries to account for cash collected at month end is an input task. The system capturing journal entries and converting them into a special format is a transformation task. Generating a monthly financial report is an output task. Maintaining all of the data in the database is a storage task. Maintenance is not considered a major task performed by any information system.
An insurance company that has adopted cooperative processing is planning to implement new standard software in all its local offices. The new software has a fast response time, is very user friendly, and was developed with extensive user involvement. The new software captures, consolidates, edits, validates, and finally transfers standardized transaction data to the headquarters server. Local managers, who were satisfied with existing locally written personal computer applications, opposed the new approach because they anticipated More accountability. Less computer equipment. Increased workloads. Centralization of all processing tasks.
More accountability. Cooperative processing implies a tighter coupling than previously existed between the personal computers and the server. The result may threaten the managers' perceived autonomy by increasing the control exercised by headquarters and therefore the accountability of local managers.
The finance department is evaluating two accounts receivable transaction processing systems. System A provides for batch processing twice weekly. System B provides online real-time processing. Which of the following requirements is most important in determining whether to adopt system A or system B? Accuracy of weekly accounts receivable aging report. Need for controls that validate transactions. Need to immediately answer customers' questions regarding account balances. Accuracy of monthly general ledger balance.
Need to immediately answer customers' questions regarding account balances. Batch processing is the accumulation and grouping of transactions for processing on a delayed basis. In a real-time system, having the latest information available at all times is crucial for making immediate decisions. Therefore, if the department needs to immediately answer customers' questions regarding account balances, it should adopt online real-time processing.
Credit Card International developed a management reporting software package that enables members interactively to query a data warehouse and drill-down into transaction and trend information via various network setups. What type of management reporting system has Credit Card International developed? Online analytical processing system. Online information storage system. Online transaction-processing system. Online executive information system.
Online analytical processing system. An important component of online analytical processing is drill-down analysis. The user is first presented with data at an aggregate level and then can display successive levels of detail for a given date, region, product, etc., until finally reaching the original transactions.
There are many ways that realtime accounts receivable systems differ from batch accounts receivable systems. Which one of the following is not correct? Realtime Systems Batch Systems Realtime Systems Must use direct-access files Batch Systems Can use simple sequential files Realtime Systems Processing choices are menu-driven Batch Systems Processing is interactive Realtime Systems Processing is done on demand Batch Systems Processing is done during scheduled computer runs Realtime Systems Invoicing is performed as goods are shipped Batch Systems Invoicing is performed through scheduled billing runs
Realtime Systems Realtime processing involves processing an input record and receiving the output soon enough to affect a current decision-making process. Such systems are often menu driven, providing the user with prearranged courses of actions. Batch processing, on the other hand, is the accumulation and grouping of transactions for processing on a delayed basis. Batch processing is thus not interactive, that is, the user does not receive immediate feedback from his or her input.
Mill Co. uses a batch processing method to process its sales transactions. Data on Mill's sales transaction file are electronically sorted by customer number and are subjected to programmed edit checks in preparing its invoices, sales journals, and updated customer account balances. One of the direct outputs of the creation of this file most likely would be a A. Report showing overdue accounts receivable. B. Report showing exceptions and control totals. C. Printout of the updated inventory records. D. Printout of the sales price master file.
Report showing exceptions and control totals. Batch processing is useful for processing large volumes of data, especially when sorted in sequential order, for example, by customer number. Editing (validation) of data should produce a cumulative automated error listing that includes not only errors found in the current processing run but also uncorrected errors from earlier runs. Each error should be identified and described, and the date and time of detection should be given. The creation of the file also generates various totals that serve as controls over the accuracy of the processing.
A firm is considering two possible computer configurations. System I would have a mainframe computer tied to 16 time-sharing terminals. System II would have a minicomputer tied to 16 intelligent workstations. Which of these two systems could be termed a "distributed system"? Neither System I nor II. System I only. Both Systems I and II. System II only.
System II only. The advent of cheaper and smaller computers has permitted the development of a somewhat different alternative to centralization or decentralization: distributed data processing. In a distributed data processing system, the organization's processing needs are examined in their totality. The decision is not whether an application should be done centrally or locally, but rather which parts of the application are better performed by small local computers as intelligent terminals and which parts are better performed at some other, possibly centralized, site. In essence, the best distribution of processing tasks within application areas is sought. The key distinction between decentralized and distributed systems is the interconnection among the nodes (sites) in the latter kind of network. Hence, System I is a traditional system, and System II is a distributed system.
In traditional information systems, computer operators are generally responsible for backing up software and data files on a regular basis. In distributed or cooperative systems, ensuring that adequate backups are taken is the responsibility of User management. Data entry clerks. Systems programmers. Data librarians.
User management. In distributed or cooperative systems, the responsibility for ensuring that adequate backups are taken is the responsibility of user management. The systems are under the control of users, not a central information processing department.
