1.

Describe how organizations purchase application software, vendor services, and

hardware.

1) Identify the statement below that is false with regards to the development of an AIS.
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.

2) When canned software is used for systems acquisition, the conceptual design phase of the
systems development life cycle (SDLC)
A) becomes a make-or-buy decision.
B) is combined with the physical design phase.
C) remains unchanged.
D) becomes a "turn-on, turn-off" decision.

3) When canned software is used for systems acquisition, the physical design phase of the
systems development life cycle (SDLC)
A) does not involve designing and coding, although modifications may still need to be made.
B) is combined with the conceptual design phase.
C) involves designing and coding, although modifications may still need to be made.
D) remains unchanged.

4) When canned software is used for systems acquisition, the implementation and conversion
phase of the systems development life cycle (SDLC)
A) involves the documentation step.
B) requires the company to have trained IS personnel.
C) requires the develop and test software step.
D) involves both A and C.

5) When canned software is used for systems acquisition, the maintenance aspect of the
operations and maintenance phase of the systems development life cycle (SDLC)
A) is more costly.
B) is often difficult to predict.
C) is usually the responsibility of the vendor.
D) requires trained personnel.

6) When a systems vendor provides both the software and hardware needed to run a system
as a package, this is known as
A) a turnkey system.
B) cloud computing.
C) an application service package.
D) canned software.

7) When a systems vendor provides software via the Internet and gives the user accesses to
the software remotely via the Internet, this is known as
A) a turnkey system.
B) cloud computing.
C) an application service package.
D) canned software.

8) Identify one major drawback that is frequently associated with canned software.
A) A commercial software development company develops 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.

9) Which statement is true regarding canned software and the systems development life cycle
(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 systems
development life cycle (SDLC) process.
C) Most canned software meets all of a company's information or data processing needs.
D) The systems development life cycle (SDLC) process does not apply to purchasing canned
software.

10) The reasons for ________ are to simplify the decision-making process, reduce errors,
provide time savings, and avoid potential disagreements.
A) leasing
B) outsourcing
C) prototyping
D) sending out a request for a proposal

11) When a request for proposal (RFP) is solicited based on ________, total costs are usually
lower, and less time is required for vendor preparation and company evaluation.
A) specific equipment needs
B) general software needs
C) exact hardware and software specifications
D) system efficiency

12) Information provided to potential vendors on a Request For Proposal (RFP) should
include
A) a budget for software and hardware.
B) detailed specifications for the AIS.
C) a timeframe required for completion of the project.
D) a high-level need for the AIS.

13) ________ is a performance evaluation approach that evaluates systems based on the
weighted score of criteria and points.
A) Benchmarking
B) Point scoring
C) Prototyping
D) Requirements costing

14) ________ is a method of comparing systems by executing an input, processing, and

output task on different computer systems and evaluating the results.
A) Benchmarking
B) Point scoring
C) Prototyping
D) Requirement costing

15) ________ is a method of comparing systems based on the cost of all required features;
when software does not meet all requirements, the cost of developing unavailable features is
estimated and added to its cost.
A) Benchmarking
B) Point scoring
C) Requirement costing
D) Prototyping

16) ________ and ________ are approaches to evaluating vendor proposals that do not
incorporate dollar estimates of costs or benefits.
A) Benchmark problem; point scoring
B) Point scoring; requirements costing
C) Requirements costing; benchmark problem
D) Point scoring; prototyping

17) The more information a company provides vendors in its request for proposal, the better
the chances of receiving a system that meets the organization's requirements. Which of the
below statements identifies why errors may decrease?
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.

18) 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.

19) 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

20) 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.

21) Carmie Iria, the director of a systems project committee, has received management
approval for the implementation of a new accounting information system. After sending out
an RFP to multiple vendors, the committee settled on purchasing a system from Optibase, a
vendor who will provide the company with all of the required hardware and software.
Carmie's committee has opted to purchase
A) canned software.
B) a turnkey system.
C) an outsourced system.
D) cloud computing.

22) Carmie Iria, the director of a systems project committee, has received management
approval for the implementation of a new accounting information system. After sending out
an RFP to multiple vendors, the committee settled on purchasing a system from Sysys, a
vendor who will provide a standard software package and post-sale technical support.
Carmie's committee has decided to go with
A) canned software.
B) a turnkey system.
C) an outsourced system.
D) an end-user developed system.

23) 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.

24) 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.

30) Who is typically responsible for installing turnkey systems?

A) An organization's IT department.
B) The vendor who provides the system.
C) A third-party hired by the system vendor.
D) Both the organization's IT department and the vendor who provides the system.

31) ________ are one example of a cloud computing solution.

A) Application service providers
B) Turnkey vendors
C) SDLC implementations
D) Canned software providers

32) Identify one of the benefits associated with procuring software from application service
providers.
A) Lower cost.
B) Scalability.
C) Greater effectiveness.
D) Faster processing speed.

33) When an organization seeks to modify canned software, it is best when ________
because unauthorized modifications may make the program unreliable.
A) the vendor modifies the software
B) the intended end-user modifies the software
C) programmers with software experience modify the software
D) the organization's IT modifies the software

34) Moneka Jones is the CIO for Noela Incorporated. Moneka wants to replace the firm's
existing system, but wants to leave the technical issues to the vendor because she is not well-
informed on the latest technologies. When preparing an RFP, Moneka most likely should
A) disclose exact hardware and software specifications.
B) disclose specific performance objectives and requirements.
C) disclose general software requirements.
D) disclose general performance objectives and requirements.
35) Moneka Jones is the CIO for Noela Incorporated. Moneka wants to replace the firm's
existing system. However, she wants to spend as little time as possible preparing and
evaluating RFPs. When preparing an RFP, Moneka should probably
A) disclose exact hardware and software specifications.
B) disclose specific performance objectives and requirements.
C) disclose general software requirements.
D) disclose general performance objectives and requirements.

2. Explain how information system departments develop custom software.

1) Which approach systems acquisition is generally costly and labor-intensive?

A) Canned software.
B) Custom software.
C) Modified canned software.
D) Turnkey software.

2) There are frequently many canned software packages available. However, many
companies choose to develop their own software. Why?
A) An organization may have unique requirements that are not addressed by canned software
packages.
B) Canned software packages are often less expensive than software developed in house.
C) The organization's size and complexity necessitate the in-house development of software.
D) A and C above are correct.

3) Which of the following is not a guideline that should be used to select an outside,
custom-system developer?
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.

4) 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.

7) Although Gillette uses canned software in its business operations, it does so with the
intention of creating a competitive advantage. Identify how Gillette aims to gain a greater
competitive advantage from using canned software.
A) From deciding how the software should be used.
B) From deciding what software should be used.
C) From the cost savings it gains by using canned software.
D) From deciding when software should be used.

8) Why does Pepsi create most of the software it uses in business operations?
A) Pepsi does not trust canned software.
B) Using canned software actually cost Pepsi more than using custom software.
C) Pepsi could not find canned software sophisticated enough to meet its needs.
D) There is no canned software available in Pepsi's industry.

9) Which of the following is not an appropriate for task end users to perform?
A) Performing statistical analyses.
B) Preparing schedules and lists.
C) Retrieving information from databases.
D) Updating database records.

10) 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.

11) ________ refers to involving users in the development, control, and deployment 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)

12) Identify the system below 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.

13) Identify one of the primary risks associated with end-user computing below.
A) IS personnel will not have enough work to do if users develop their own systems.
B) Systems that have not been adequately tested may be implemented.
C) System costs may skyrocket.
D) System development time may increase substantially.
14) 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.

15) A second-line help desk operator would most likely

A) handle complicated queries requiring research.
B) provide callers with scripted answers.
C) use expert systems to resolve issues.
D) handle less complicated queries requiring research.

16) 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.

17) Where is the responsibility for the development of end-user computing applications
typically placed?
A) End users.
B) Help desk.
C) Front-line analysts.
D) Second-line technicians.

20) End-user development is inappropriate for which types of systems?

A) Systems that process a large number of transactions.
B) Systems that need to be developed rapidly.
C) Systems that must be easy to use.
D) Organizations that have large IT departments.

21) Identify the system below that is likely to be most appropriate for end-user development.
A) An accounts receivable system.
B) A general ledger system.
C) An inventory system.
D) A loan amortization spreadsheet program.

22) Identify the system below that is likely to be most appropriate for end-user development.
A) An accounts receivable system.
B) A general ledger system.
C) An inventory system.
D) A system that helps with sensitivity analysis.

25) If recent trends in end-user computing (EUC) persist, EUC will represent ________ of all
information processing by the end of 2020.
A) 15% - 24%
B) 20% - 49%
C) 50% - 74%
D) 75% or more

26) Why are end-user created systems often poorly documented?

A) Users often do not know how to document systems properly.
B) Users often consider systems documentation to be unimportant.
C) Users often believe it is too expensive to properly document systems.
D) Users are often unaware they need to properly docnument systems.

27) Who should maintain control of access to date in a user-created system with proper
controls?
A) The end-users.
B) Management.
C) The IT department.
D) A help desk.

3. Explain why organizations outsource their information systems, and evaluate the
benefits and risks of this strategy.

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

A) By allowing a company to 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.

2) Which of the following is not a benefit of outsourcing?

A) Access to greater expertise and more advanced technology.
B) Ability to gain greater control.
C) Improved development time.
D) Lower costs.

3) The risk of losing a fundamental understanding of a company's AIS needs and the strategic
users of an AIS as a result of outsourcing is referred to as
A) focus reduction.
B) loss of control.
C) reduced competitive advantage.
D) unfulfilled goals.

4) The risk of the potential high cost to reverse outsourcing is referred to as

A) focus reduction.
B) locked-in system.
C) reduced competitive advantage.
D) unfulfilled goals.

5) Why might outsourcing cause employee resistance?

A) Outsourcing often allows a company to better use its assets and scarce resources.
B) Outsourcing can lower a company's overall IS costs.
C) Outsourcing often facilitates downsizing.
D) Outsourcing helps eliminate the peaks and valleys of system usage.

6) The unauthorized disclosure of sensitive information is an example of what risk associated

with outsourcing?
A) A locked-in system.
B) A loss of control.
C) A reduced competitive advantage.
D) Inflexibility.

7) 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 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.
B) a turnkey system.
C) an outsourced system.
D) an end-user developed system.

8) Sabella Cycles declared bankruptcy in 2013 and has since closed 5 outlets, or
approximately 25% of its locations. Sabella needs to reduce the costs of operating the firm's
information systems. To accomplish this, Sabella might decide to
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.

12) WorldWide Supermarket, a grocery store with 5,000 locations around the world surprised
financial markets by announcing that it was selling all of its computers to CompuService and
hiring the firm to operate and manage the supermarket's system. WorldWide Supermarket just
engaged in which type of outsourcing agreement?
A) A locked-in agreement.
B) A mainframe agreement.
C) A client/server agreement.
D) A cloud computing agreement.

13) All of the following are reasons a company might choose to outsource its systems
operations and maintenance except
A) increased flexibility.
B) increased innovation.
C) reduce costs.
D) foster competition.

14) According to a survey discussed in your textbook, what percentage of outsourcing

experiences have been labeled as "disasters" by company executives?
A) 5%.
B) 17%.
C) 33%.
D) 50%.

15) According to your textbook, what percentage of outsourcing agreements have been
described as failure or as major disappointments?
A) 5% - 10%.
B) 10% - 25%.
C) 25% to 50%.
D) Greater than 50%.

16) According to a survey discussed in your textbook, what percentage of companies

outsourced some or all of their information systems?
A) 5%.
B) 25%.
C) 50%.
D) Greater than 50%.

17) Which of the following does not typically cause outsourcing failures?
A) Lukewarm company buy-in.
B) Blind imitation of competitors.
C) Ill-defined outsourcing agreements.
D) Downsizing.

4. Explain how business process management, prototyping, agile development, and

computer-aided software engineering can help improve system development.

1) 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.

2) 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.

3) 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 on technology for communication and coordination.

4) 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.

7) Which of the following is a one-time event that can yield dramatic performance
improvements?
A) Business process reengineering (BPR).
B) Business process management (BPM).
C) Business process innovation (BPI).
D) Business process diagramming (BPD).

8) Which of the following technology allows for a continuous approach to improve and to
optimize business processes?
A) Business process reengineering (BPR).
B) Business process management (BPM).
C) Business process innovation (BPI).
D) Business process diagramming (BPD).

9) Which of the following is a system that automates and facilitates business process
improvements throughout the system development life cycle?
A) Business process reengineering system (BPRS).
B) Business process innovation system (BPIS).
C) Business process management system (BPMS).
D) Business process diagramming system (BPDS).

10) Identify a key advantage of a business process management system (BPMS) as compared
to an event-based system.
A) Ease of use.
B) Increase processing speed.
C) Cost saving.
D) Built in audit trail.

11) 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

12) 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.

13) The first step in developing a prototype emphasizes

A) developing a good prototype into a fully functional system.
B) speed and low cost rather than efficiency of operation.
C) that users identify changes to be made in an iterative process.
D) what output should be produced rather than how it should be produced.

14) Identify the system below where development would not likely benefit from treating a
prototype.
A) Decision support systems.
B) Executive information systems.
C) Expert systems.
D) Systems that cross a number of organizational boundaries.

15) Identify one disadvantage in 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.

16) 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.

17) 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.

18) As part of the bidding process required for bidding on providing a new software system
to Kinect Incorporated, Thorton Wilder prepared diagrams that represent input and output
screenshots. These diagrams are an example of
A) CASE.
B) an operational prototype.
C) a RFP.
D) a nonoperational prototype.

19) As part of the bidding process required for bidding on providing a new software system
to Kinect Incorporated, Thorton Wilder prepared a functional program that stimulated the
new system's input and output interface. This program is an example of
A) CASE.
B) an operational prototype.
C) a RFP.
D) a nonoperational prototype.

21) Prototyping is often appropriate when

A) there is a low level of uncertainty.
B) it is clear which questions need to be addressed.
C) there is a high likelihood of failure.
D) there are limited financial resources available.

22) Which is not a problem with CASE technology?

A) cost
B) incompatibility
C) lack of system documentation
D) unmet expectations

23) 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

24) 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.

28) A guiding philosophy and a set of principles for developing information systems in an
unknown, rapidly changing environment is called
A) agile development.
B) scrum methodology.
C) scrum development.
D) user stories.

29) A software development methodology where a team works together in an intense but
relatively short iterative and incremental scrum process to reach a common development
goal, with team members meeting daily in face-to-face communication, until development is
concluded is called
A) agile development.
B) scrum methodology.
C) scrum development.
D) user stories.

30) A process that embraces customers frequently changing their minds about what they need
or want and with the focus on flexibility, responding to new requirements, adapting to
evolving changes in technology, and quickly delivering a system the customer can evaluate is
called
A) agile development.
B) scrum methodology.
C) scrum development.
D) user stories.

31) A description of something a user wants to include in the system written by the product
owner is called
A) agile development.
B) scrum methodology.
C) scrum development.
D) user stories.
32) A software development methodology designed to produce higher-quality software more
productively by taking the beneficial elements and best practices of traditional software
development to "extreme" levels is called
A) extreme prototyping.
B) extreme development.
C) extreme processing.
D) extreme programming.

33) The four phases of the unified process software development framework are
A) inception, transition, construction, and elaboration.
B) inception, transition, elaboration, and construction.
C) inception, construction, elaboration, and transition.
D) inception, elaboration, construction, and transition.