Chapter 06 True/False

"Economic feasibility" refers to whether a company can afford a proposed system.

False

It is not important to satisfy top management goals when creating a new information system because most such systems are used by operating employees, not top managers.

False

Knowledge process outsourcing (KPO) mainly refers to outsourcing to offshore companies in places where labor is cheap.

False

Most systems development life cycles consist of mutually exclusive activities, with little overlap between the stages.

False

One goal that outsourcing rarely achieves is saving money.

False

PERT is an acronym for "Project Expert and Resource Technique."

False

Systems study work ends when the follow up analysis shows that no further adjustments need to be made to the newly implemented system.

False

When developing a new AIS, it is important for designers to delay developing controls for it so that they can retrofit controls after the new system is best understood.

False

Within the context of systems design, an example of a "demand report" is one that shows anticipated demand for a new product.

False

Within the context of systems design, an example of an "exception report" is one that identifies exceptional employees, as judged by popular vote.

False

"Analysis paralysis" means "analyzing a system to death" at the expense of reaching a conclusion.

True

One method of studying a current AIS is to observe the system in operation.

True

One thing that can go wrong during systems implementation is implementing a system that has not been completely tested.

True

Systems survey work might include gathering data on an existing information system or observing the current system in operation.

True

The "slack time" for a PERT activity represents the amount of time the activity can be delayed without delaying the entire project.

True

The information needs of operating managers are normally easier to determine than those of top managers because their decision making tends to be better defined and narrower in scope.

True

The purpose of PERT is to coordinate the activities in a project, such as a systems implementation project.

True

The search for more efficient ways to serve customers is an important reason why business organizations perform systems studies.

True

The term "RFP" stands for "request for proposal."

True

The term "cost/benefit" is most closely associated with the economic feasibility of a proposed accounting information system.

True

Top management involvement is critical to the success of a systems study.

True

Unless the human element of a systems change is considered, the best designed system "on paper" will often be an operational failure when it is implemented.

True

When a waitress delivers food late to a customer because the kitchen is backed up, the "late food" is an example of a symptom while the "kitchen being backed up" is the real cause of the problem.

True

When comparing computer vendor proposals, the reputations of these vendors should also be evaluated.

True

"Schedule feasibility" is not important to a study team if a company already has an automated system.

False

"Schedule feasibility" refers to whether or not computer vendors can provide bids in a timely manner.

False

A study team should approach a systems study with a narrow point of view in order to focus directly on the system and not be distracted by peripheral issues.

False

The tasks involved in "systems maintenance" are normally performed by external vendors, and rarely by a company's internal information systems department.

False

The term "RFP" stands for "reference project."

False

The term "RFP" stands for "relative forthcoming price."

False

The terms "parallel conversion" and "direct conversion" are different terms for the same thing.

False

The three major types of organizational goals discussed in the chapter are (1) general systems goals, (2) computer goals, and (3) salary goals

False

An alternative to developing its own AIS, an organization might consider outsourcing the processing to an external company.

True

An important deliverable from the analysis portion of a systems study is the final systems analysis report, which should be sent to the company's steering committee.

True

An important first step in the systems analysis phase of a systems study is a preliminary investigation of the system under study.

True

Another common term for "prewritten software" is "canned software."

True

As part of the systems follow up work, an implementation team can watch employees perform their work activities to ascertain whether the employees are executing their assigned job functions correctly.

True

At the conclusion of the initial follow-up study, a project leader will prepare a report called a post-implementation review report.

True

One implementation problem is installing a new system that is not adequately documented or tested.

True

One way to help ensure a systems study uses a "broad point of view" is to assemble an interdisciplinary study team.

True

Outsourcing can help a company avoid seasonal fluctuations in its business.

True

Outsourcing facilitates downsizing.

True

The critical path represents the longest path through a PERT network diagram.

True

The first stage in the systems development life cycle is planning the systems study itself.

True

The implementation and initial operation phase of a systems study is also known as the "action" phase of a systems study.

True

When developing the specifications for a new AIS, designers begin with outputs—not inputs or processing requirements.

True

When using outsourcing, a company needing data processing services hires an outside organization to handle all or part of these services.

True

Within the context of systems design, the "make or buy" decision refers to whether an organization should purchase an existing system, or develop its own system.

True

Gantt charts are the same as PERT charts.

False

Accountants do not have to worry much about systems studies—they are rarely affected by them.

False

An advantage of prototyping is that models are usually developed without the aid of a computer.

False

An example of a soft-copy report is one that identifies slow-moving items where demand is soft.

False

Controls are rarely established during the implementation of a new computer system—this must wait for the first audit of the system.

False

During systems implementation, "converting computer files" is only necessary if the files are currently in manual formats.

False

In the context of systems analysis, the goal of developing a "flexible AIS" means that the system should be able to process a variety of transactions and produce a variety of outputs

False

The developers of new accounting information systems should not be concerned with non-monetary figures because these are mostly irrelevant to accountants.

False

The first stage in the systems development life cycle is analyzing the company's current system.

False

The information needs of top managers tend to be the most detailed, and focus on short range planning and budgeting.

False

The members of a systems study team should be from the same discipline or area so that they can work together well.

False

50. In selecting a vendor finalist, a steering committee can use a point-scoring analysis to evaluate the proposals of alternate computer vendors.

True

A "turnkey" computer system is a complete set of computer hardware and software that allows the user to avoid technical decisions and to begin operating quickly.

True

A PERT network diagram reflects the logical sequence of systems implementation activities.

True

A disadvantage of outsourcing is that a company can lose control of its IT systems and data processing.

True

A possible advantage of outsourcing is that it frees corporate assets for other projects.

True

An example of "legal feasibility" is whether or not a proposed computer system can comply with state and federal statutes.

True

An example of knowledge process outsourcing (KPO) is processing tax returns.

True

Employee behavioral problems are rarely important in systems analysis and design work because most systems are computer-based, not human-based.

True

For a system to be totally feasible, all feasibility areas must be considered in the process.

True

In designing an AIS, system developers should design the outputs of the system first, not the inputs.

True

Project management software allows users to perform "what-if" analysisfor example, to determine how different work schedules might lower the time to install a new computer system

True

Prototyping is an approach to systems design whereby a design team develops a simplified shell of working software for a proposed information system.

True

When considering the design of a new system, four types of feasibility concerns are (1) technical feasibility, (2) operational feasibility, (3) schedule feasibility, and (4) legal feasibility.

True

"Cost" is rarely a concern in developing information system. What is more important is that the anticipated benefits of a new AIS exceed its costs.

True