Accounting Information Systems 3rd Edition Chengyee Janie Chang, Rod E. Smith, Vernon Richardson - Solutions

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For each of the following, please define these as either work breakdown structure, triple constraint, 100% rule, or 15-15 rule. LO 18-4
Decide whether each of these statements regarding the technology acceptance model are true or false. LO 18-5
There are five phases in the systems development life cycle (SDLC). Match the description of each phase to the correct phase. LO 18-1
The textbook emphasized the challenges of IT project management. In 2012, what were the outcomes of IT projects (as reported in the text)? LO 18-4
We discussed 10 core effective information technology planning principles. Match the description of each with its respective principle. LO 18-2
We discussed 10 core effective information technology planning principles. Match the description of each with its respective principle. LO 18-2
Consider the triple constraints diagram in Figure 18.3. Why is quality included in that figure even if it is not one of the triple constraints? Why is quality a concern (or not a concern, based on your point of view) for the project manager and project sponsor? LO 18-4
The following PERT chart (Figure 18.7) represents the tasks to be done to implement a system. Can you think of other steps that should be included? Is there adequate time for training given the technology acceptance model’s recommendation to focus on perceived usefulness and perceived ease of
As mentioned in the opening vignette, Walmart is implementing its SAP system throughout its worldwide operations. If Walmart has the choice, should it implement this system in China before, at the same time, or after the implementation in the United States? Use the technology acceptance model (in
Brainstorm a list of reasons why 71 percent (including 52 percent challenged plus 19 percent failed) of the information technology projects either failed or were challenged in 2015.Consider specifics of each of the elements of the triple constraints model and any other common delays, including the
For your personal consulting business, you decide to set up an accounting information system to help with taxes as well as to help monitor your revenues and expenses. You’ve heard that QuickBooks is easy to set up, so you buy it, install it on your computer, enter in recent transactions, and
Accountants generally do not have all of the necessary systems analyst and systems development skills needed to develop accounting information systems. Why should you be interested in project management of an accounting information system? LO 18-3
In the chapter, we discussed an example of Starbucks using the systems development life cycle to develop the capability to analyze what type of pastries sell best with its various hot and cold drinks. Now, let’s suppose that NASDAQ requires all of the firms trading on the exchange to report their
As part of effective IT planning in the systems development life cycle, a return on investment (ROI) calculation may be performed as part of the economic feasibility analysis.Often, many of the benefits from a new information system may be intangible benefits(e.g., system is easier to use or system
Using the 15-15 rule as a guide, when would a project manager and/or project sponsor proceed with completion of a project even if it is both 15 percent over budget and 15 percent off the initial schedule? LO 18-4
Compare and contrast a PERT chart and a Gantt chart. How do they complement each other? LO 18-4
What are the differences between the situation in Question 4 and that of users of a brandnew accounting information system? LO 18-5
Your grandmother regularly listens to oldies music on a collection of cassette tapes using a Sony Walkman (vintage 1989). She appreciates the ability to take her music with her when she goes on walks. You are convinced that a newer music player, such as an iPod touch, would bring her into the
Explain the 100% rule. Assume you are telling your roommate about this rule, and use an example that is relevant to him or her. LO 18-4
Imagine the role of the project sponsor when a leader of the accounting bookkeepers comes to complain that the new information system could possibly result in the loss of five bookkeeper jobs. The bookkeepers argue that they will get the union involved if needed to protect their jobs. What should
Rank the 10 core principles of effective information technology planning in order of importance in your opinion. Provide support for your top 5 important principles. LO 18-2
Which term defines the broadening of a project that occurs after the project begins? LO 18-4a. Project planningb. Scope creepc. Cost overrund. 15-15 rulee. None of the above
Which member of the project team will take responsibility for the success of the project?LO 18-3a. IT leadb. Project managerc. Project sponsord. CEOe. None of the above
Which phase of the systems development life cycle summarizes the business needs with a high-level view of the intended project? LO 18-1a. Analysis phaseb. Planning phasec. Maintenance phased. Design phasee. Implementation phase
Which phase of the systems development life cycle would include describing in detail the desired features of the system? LO 18-1a. Analysis phaseb. Design phasec. Planning phased. Maintenance phasee. Implementation phase
The technology acceptance model addresses: LO 18-5a. intention to adopt mobile technology.b. perceived ease of use.c. perceived usage.d. perceived ability to address technical difficulties.e. none of the above.
In this chapter, projects are defined as: LO 18-3a. a series of tasks performed in a defined sequence.b. turning raw talent into an NFL-quality quarterback.c. turning blueprints from an architect into a completed building.d. merging two databases into one.
The Sarbanes-Oxley Act’s section 404 reports require management and auditors to report on: LO 18-2a. the financial condition of the firm.b. the quality of the project management planning.c. the academic background and experience of the company’s accounting leadership.d. the effectiveness of the
The technology acceptance model does not address: LO 18-5a. perceived usefulness.b. perceived systems quality.c. perceived ease of use.d. intention to use.
The critical path in a PERT chart represents: LO 18-4a. the sequencing of tasks.b. the most important tasks of the whole project.c. the longest path of tasks needed for project completion.d. the tasks that must be completed without errors.
The 100% rule suggests that before a PERT chart is done, a project manager must: LO 18-4a. make sure 100 percent of the project is funded.b. make sure the project team is devoted solely, or 100 percent, to the project.c. make sure that each person on the project team got 100 percent on his or her
According to the 2015 Standish Report, the percentage of IT projects that either fail or are challenged is: LO 18-4a. 52 percent.b. 19 percent.c. 71 percent.d. 29 percent.
The triple constraints of project management do not include the constraint of: LO 18-4a. technical issues.b. time.c. cost.d. scope.
Projects are considered challenged if they: LO 18-4a. are late, are over budget, or do not have the required features and functions.b. are canceled prior to completion.c. are delivered but never used.d. are completed early.
The IFAC suggested 10 core principles of effective information technology planning.Which of the following is not one of those 10 core principles? LO 18-1a. Achievabilityb. Justifiable costc. Reassessmentd. Accountability
Which phase of the systems development life cycle would include a feasibility analysis? LO 18-1a. Analysis phaseb. Planning phasec. Design phased. Implementation phase
A firm is considering two projects. Both have an initial investment of $1,000,000 and pay off over the next 5 years in this fashion. The cost of capital is 8 percent. LO 17-6a. Which of these has a faster payback period?b. Which of these options has a higher net present value?c. Which of these
A firm is considering two projects. Both have an initial investment of $1,000,000 and pay off over the next 5 years in this fashion. The cost of capital is 6 percent. LO 17-6
There are several approaches to quantifying expected project benefits. Which of the following uses simulation, external benchmarks, real option theory, or expert opinion to help with the quantification? LO 17-3 1 Software that allows you to consider the impact under a variety of assumptions 2
Which of these project costs would be considered to be acquisition costs and which would be considered to be operating costs? LO 17-4 1 Hardware replacement 2 Help desk support 3 Software upgrade 4 Development 5 Initial training 6 Ongoing training 7 Maintenance contracts 8 Project management
Project benefits may come from a variety of sources. Match the examples of these project benefits to their terms. LO 17-3
Match the description of these financial metrics to their terms. LO 17-6
After identifying relevant risks, the project team often employs risk-minimization techniques to lessen the probability or impact of the risk. Match the description/example of the risk mitigation technique with the type of risk being mitigated. LO 17-5
Each alternative IT initiative carries risk of failing to achieve the respective benefits and exceeding the estimated costs. Match the description of risk with each risk term. LO 17-5
Sunset Graphics is considering moving to a cloud-based accounting system because its current system only runs on outdated computers. The cloud-based system is very similar to the current system, so there would be no additional training required. The cloud-based system will cost $1,500 per month for
Sunset Graphics is considering two mutually exclusive projects. Both require an initial investment of $100,000. Assume a marginal interest rate of 10 percent and no residual value for either investment. The cash flows for the two projects are expected to be the following: LO 17-6
Refer to the Starbucks vignette at the beginning of this chapter. Starbucks has aggressively pursued digital ventures to improve the customer experience and increase the amount of customer transactions per visit. Among other things, Starbucks mines the data from customer loyalty cards to examine
The Beach Dude Inc. (BD) sells surf gear and clothing to retail stores around the country.It outsources the production of most of its items, so its warehouse is very busy receiving incoming shipments and preparing deliveries to customers. After a thorough review of its warehouse processes, the
SlowRider Inc. had a rudimentary business intelligence (BI) system. Analysts at SlowRider Inc. pulled data from three different ERP systems, loaded the data into Excel spreadsheets, and emailed those spreadsheets to the senior managers each month. However, some managers complained that they
Moore’s law suggests that computing power for the same cost doubles every two-and-a-half years. A combination of Moore’s law and the commoditization of computer components has made it possible to buy a $500 computer today that is more powerful and portable than a similar offering that cost
Congratulations. You’ve won the state lottery. You have a choice of three options: (a)$12 million 5 years from now, (b) $2.15 million at the end of each year for 5 years, (c)$7 million today, or (d) $10 million 3 years from now. Assuming you can invest at 8 percent, which option would you prefer?
Your company has just completed a major IT initiative and is reviewing the outcome. It notes that the project took 3 months longer than expected. As part of the project, the company wanted to use some automatic bar code readers, but the rate of correct bar code reads was below the expected rate.
What is the NPV of each project? What is the absolute maximum that the company should consider investing in each project? LO 17-6
Consider two projects. Project 1 costs $262,000 and returns $60,000 per year for 8 years.Project 2 costs $390,000 and returns $70,000 per year. Project 2 is determined to be less risky, so your company only requires an 8 percent minimum annual return compared to 10 percent for project
Use Microsoft Excel to assess the internal rate of return for an IT initiative. Suppose the initial investment is $60,000. The returns on investment in dollars for the following 5 years are(a) $10,000, (b) $12,000, (c) $15,000, (d) $21,000, and (e) $26,000. Use the IRR function to compute the
Use Microsoft Excel to assess the NPV of an IT initiative. The initiative will require an initial investment of $250,000 and is expected to return $150,000 per year for the next 3 years.Assume a discount rate of 10 percent. What is the NPV? How does the NPV change if the discount rate is 15
Chapter 16 described three types of IT: function, network, and enterprise IT. Consider the diagram shown in Figure 17.2. Which type of IT is likely to have the greatest impact on business performance? Which type of IT would require the most complementary changes? Why? LO 17-2 3 The benefits of an
An important first step in the economic justification process is to assess business requirements.How would the Balanced Scorecard framework presented in Chapter 16 help companies assess their business requirements for IT? LO 17-2
What type of IT initiative risk is it if hardware/software vendors do not meet system requirements? LO 17-5a. Alignment riskb. Solution riskc. Financial riskd. Project riske. Technological risk
What type of IT initiative risk is it if top management does not have active support for the project? LO 17-5a. Alignment riskb. Solution riskc. Financial riskd. Project riske. Technological risk
Which of the following would be considered indirect acquisition costs when estimating costs associated with an IT initiative? LO 17-4a. Networking and communicationsb. Business disruptionc. Ongoing trainingd. Software upgradese. None of the above
Which of the following would be considered direct acquisition costs when estimating costs associated with an IT initiative? LO 17-4a. Networking and communicationsb. Business disruptionc. Employee downtimed. Help desk supporte. None of the above
What is the order of events for the economic justification process? LO 17-2a. Identify potential solutions Assess business requirements Estimate costs Assess valueb. Assess business requirements Estimate costs Identify potential solutions Assess valuec. Identify potential solutions Estimate
If an IT project costs $150,000 and returns net cash flows of $100,000 per year, what is the accounting rate of return? LO 17-6a. 33 percentb. 50 percentc. 67 percentd. 75 percente. None of the above
If an IT project costs $150,000 and returns net cash flows of $100,000 per year, what is the payback period? LO 17-6a. 1 yearb. 1.5 yearsc. 2 yearsd. 2.5 yearse. None of the above
Which of the following is not a category of IT initiative risk? LO 17-5a. Alignmentb. Technologicalc. Financial misstatementd. Solutione. All of the above are examples of IT initiative risk.
Which of the following are not examples of operating costs for an IT investment? LO 17-4a. Costs of routine hardware replacements over timeb. Cost of contract for help desk supportc. Costs of disposal of electronics at end of lifed. Costs of software license renewalse. All of the above are examples
Which of the following are examples of direct costs of acquiring and implementing an IT investment? LO 17-4a. Cost of hiring consultants to assess system requirementsb. Personnel costs of the project teamc. Training costs of employees who will use the systemd. Cost of new computer hardware
Which of the following can be used to quantify benefits on an IT investment? LO 17-3a. Gathering expert opinionsb. Benchmarking against competitor performancec. Comparing against the probability of future benefits if investment is forgoned. Conducting simulationse. All of the above
Which of the following is not an example of benefits of an IT investment? LO 17-3a. Increased revenues from access to new marketsb. Decreased costs from automating manual tasksc. Facilitating employee work-from-home arrangementsd. Allowing compliance with new federal regulationse. Reducing the
Which of the following is a not an example of a complementary change necessary to allow an IT initiative to achieve its goals? LO 17-2a. Outsource the IT initiative.b. Retrain employees.c. Redefine job descriptions.d. Provide incentives for employees to make the change successfully.e. None of the
What is the first step in the economic justification process? LO 17-2a. Identify potential solutions.b. Assess the value proposition.c. Assess business requirements.d. Estimate costs.e. All of the above
Which of the following is a question that companies should answer when preparing the business case for an IT investment? LO 17-2a. How much will it cost?b. What are the risks?c. What are the alternatives?d. How will success be measured?e. All of the above
Use the company that you selected for problem 6. Find a direct competitor of that company. Develop a business model canvas that describes the competitor’s business. Start by defining their value proposition. Examine differences in the two business model canvases.Which company is better? Why? LO
Use the company that you selected for problem 6. Identify ways that they use information technology in each building block of the canvas. Structure your answer like table 16.4 and be as specific as possible. LO 16-8, LO 16-9, LO 16-10
Use the company that you selected for problem 6. Identify examples of their key activities and explain how those might affect their business model performance. LO 16-8, LO 16-9
Use the company that you selected for problem 6. Identify examples of their key resources and explain how those might affect their business model performance. LO 16-8, LO 16-9
Select a prominent public company, such as Apple, Google, or Microsoft. Obtain recent annual reports and news articles about the company. Using that information, develop a business model canvas that describes their business. Start by defining their value proposition. LO 16-8
A company has elected to pursue the initiatives listed in parta. For each initiative, describe which Balanced Scorecard perspectives the initiative will address and, specifically, which of the performance measures in part b it will affect. LO 16-1, LO 16-2a. Initiatives Purchase new, more
Using the following objectives, create a strategy map that places them at the proper perspective and links them together. For each objective, develop two possible measures.LO 16-1, LO 16-2a. Manage the product portfolio for superior innovation.b. Acquire new customers.c. Improve fixed asset
Select a prominent company that experienced problems during the 2008–2010 economic downturn, such as Bank of America, Goldman Sachs, or AIG. Use annual reports and news articles from that time to develop a strategy map that describes the elements that caused the company’s financial problems. LO
Use the company that you selected for Problem 1. Identify examples of its learning and growth efforts and explain how those might affect its business process performance.LO 16-1, LO 16-2
Select a prominent public company, such as Apple, Google, or Microsoft. Obtain recent annual reports and news articles about the company. Using that information, develop a strategy map that describes the company’s performance. Start by defining its value proposition and then identifying key
Name a company that segments their customer segment. What are some characteristics of that company’s products? LO 16-9
Name a company that sells to a niche market customer segment. What are some characteristics of that company’s products? LO 16-9
Name a company that sells to a mass market customer segment. What are some characteristics of that company’s products? LO 16-9
Consider a large, Fortune 500 company. They are probably too complicated for one business model canvas. What advice would you give them about how to divide up their business into multiple business model canvases? LO 16-8
The CEO of a midsized company is considering purchasing an ERP system but may not have fully considered the other changes that the company needs to make to maximize the value of the system. Using a Balanced Scorecard framework, create a strategy map that describes how the ERP system could benefit
Describe likely differences in a Balanced Scorecard between a for-profit company and a not-for-profit (or governmental) organization. Which perspectives are each organization more likely to focus on? LO 16-1, LO 16-2
Outline a Balanced Scorecard for your business school. How would using your Balanced Scorecard system affect the management of the school? LO 16-1, LO 16-2
A company is developing key process indicators (KPIs) for the information capital aspect of its learning and growth. It is considering measuring the amount spent on information technology hardware and software as its measure. What advice would you give it about that choice? LO 16-1, LO 16-2
A biotech company is considering developing an IT system that will track the progress of its drug compounds through the Food and Drug Administration (FDA) approval process.Describe, as specifically as possible, how that IT initiative might affect performance across all four Balanced Scorecard
Does the Balanced Scorecard framework provide a performance measurement system or a performance management system? Why? LO 16-1, LO 16-2
Some companies create a Balanced Scorecard by taking some current objectives and key performance indicators (KPIs) and assigning them to the four Balanced Scorecard perspectives. Describe the advantages and disadvantages of that approach. LO 16-1, LO 16-2
If a company does not want to implement a formal Balanced Scorecard performance management system, is it still beneficial for the company to develop a strategy map? Why or why not? LO 16-1, LO 16-2
One criticism of the Balanced Scorecard is that it can lead to information overload by measuring too many performance indicators. Do you agree with this criticism? Why or why not? LO 16-1, LO 16-2
Consider a company that competes on price, such as Walmart, in comparison to a company that competes on other factors, such as Starbucks. Describe how their Balanced Scorecard objectives and the corresponding measures would differ across the four perspectives. LO 16-2
In the business model canvas, a description of the channels should answer which of the following questions? LO 16-9a. How do we produce our products?b. How much does it cost to produce our products?c. How do we reach our customers?d. How do we interact with our customers?e. How do we get our
In the business model canvas, a description of the key partners should answer which of the following questions? LO 16-9a. How do we produce our products?b. How much does it cost to produce our products?c. How do we reach our customers?d. Who helps us produce our products?e. How do we interact with
In the business model canvas, a description of the key resources should answer which of the following questions? LO 16-9a. What do we need to produce our products?b. How do we produce our products?c. How much does it cost to produce our products?d. How do we reach our customers?e. How do we

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Accounting Information Systems 3rd Edition Chengyee Janie Chang, Rod E. Smith, Vernon Richardson - Solutions

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