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Accounting Information System Part 42

This document contains 15 multiple choice questions about accounting information systems and related concepts like outsourcing and business process reengineering. Question topics include the duties of second-line help desk personnel, the definition of outsourcing, benefits and risks of outsourcing, principles of business process reengineering, components of an accounting information system, and key functions an AIS must be able to perform. The correct answers are also provided.

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Vin Ten
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42 views

Accounting Information System Part 42

This document contains 15 multiple choice questions about accounting information systems and related concepts like outsourcing and business process reengineering. Question topics include the duties of second-line help desk personnel, the definition of outsourcing, benefits and risks of outsourcing, principles of business process reengineering, components of an accounting information system, and key functions an AIS must be able to perform. The correct answers are also provided.

Uploaded by

Vin Ten
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Accounting Information System Part 42

Examinations

1. A help desk can encourage, support, coordinate, and control end-user activities. A help desk
department may be organized with front-line and second-line analysts and technicians. What
would be one duty of second-line help desk personnel?
a) handling complicated queries requiring research
b) provide callers with scripted answers
c) using expert systems to quickly find answers
d) None of the duties listed above pertain to second-line help desk personnel.

2. The practice of hiring an outside company to handle all or part of the organization's data
processing activities is called
a) outsourcing.
b) prototyping.
c) reengineering.
d) turnkey system.

3. How does outsourcing improve an organization's utilization of assets?


a) by allowing a company to completely 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.

4. Which of the following is not a benefit of outsourcing?


a) access to greater expertise and more advanced technology
b) greater control
c) improved development time
d) lower costs

5. A company that has outsourced its AIS function can lose a fundamental understanding of its
AIS needs and the strategic uses of AIS with the passing of time. What is this risk called?
a) locked-in system
b) loss of control
c) reduced competitive advantage
d) unfulfilled goals

6. The success of large corporations that use outsourcing for their information system
requirements has motivated other organizations to consider outsourcing. Which advantage of
outsourcing, given below, may tend to cause resistance on the part of in-house IS staff and
other organization employees?
a) Outsourcing allows a company to better use its assets and scarce resources.
b) Outsourcing can lower a company's overall IS costs.
c) Outsourcing facilitates downsizing.
d) Outsourcing helps eliminate the peaks and valleys of system usage.

7. What is a disadvantage of an organization's outsourcing of information systems?


a) Many outsourcing goals and benefits are never realized.
b) Outsourcing may result in faster and more efficient systems development.
c) Outsourcing provides access to greater expertise.
d) Outsourcing provides access to more advanced technology.

8. There are certain risks associated with outsourcing. One possible risk is the exposure of the
sharing of confidential data with unauthorized parties. This risk can be placed into the
category of
a) a locked-in system.
b) a loss of control.
c) a reduced competitive advantage.
d) inflexibility.

9. Which of the following statements about reengineering is inaccurate?


a) The data should be centralized and then dispersed throughout the company.
b) The information should be processed by those who use it.
c) The organization should be based on the different tasks that make up the processes.
d) The processes should be performed by output users.

10. Which business process reengineering principle is applied when the traditional approvals for
routine purchases are removed and replaced by users placing the orders themselves?
a) have output users perform the process
b) have those who produce the information process it
c) integration of parallel activities
d) organize around outcomes, not tasks
11. An AIS is a system of six interrelated components that interact to achieve a goal. One of
these components, which includes both manual and automated activities that involve
collecting, processing, and storing data, is known as
a) Information or data
b) Procedures and instructions
c) Software
d) Information technology infrastructure

12. An accounting information system must be able to perform which of the following tasks?
a) collect transaction data
b) process transaction data
c) provide adequate controls
d) all of the above

13. Which of the following is not an example of a common activity in an AIS?


a) buy and pay for goods and services
b) sell goods and services and collect cash
c) summarize and report results to interested parties
d) recording of sales calls for marketing purposes

14. Which of the following is not one of the components of an AIS?


a) Internal controls and security measures
b) People
c) Procedures and instructions
d) Software and hardware

15. An AIS must be able to fulfill three important functions in any organization. One such
function is the collecting and storing of data about activities performed by the organization.
One group that relies on both the adequate collection and transformation of data for decision-
making purposes for an organization is
a) management.
b) interested outsiders.
c) competitors.
d) the government.

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