STUDY UNIT ELEVEN IT ROLES, SYSTEMS, AND PROCESSING Flashcards Preview

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Flashcards in STUDY UNIT ELEVEN IT ROLES, SYSTEMS, AND PROCESSING Deck (19):
1

Advances in technology are making it possible to relieve entities of the necessity of having their own computer hardware installations.
True.
False.

True.
Your answer is correct.
The next stage of evolution is cloud computing, where organizations are relieved of the need to manage the storage of both applications and data. All the software and data they need are located on the Internet. The savings in the cost of equipment and specialized knowledge can be significant.

2

ERP is intended to integrate enterprise-wide information systems by creating multiple databases linked to all of an organization’s applications.
True.
False.

False.
Your answer is correct.
Enterprise resource planning (ERP) is the latest phase in the development of computerized systems for managing organization resources. ERP is intended to integrate enterprise-wide information systems by creating one database linked to all of an organization’s applications.

3

Which of the following statements regarding decision support systems is generally true?
A Decision support systems facilitate solving relatively unstructured problems.
B Decision support systems are usually developed most successfully by using a system development life cycle approach.
C A decision support system should be designed to provide specific answers and a predefined sequence of analysis.
D A decision support system best supports very structured applications.

A Decision support systems facilitate solving relatively unstructured problems
This answer is correct.
The decision support system (DSS) assists a decision maker by allowing him/her to access data and to test different solutions to the problem. This system only supplies support and should not take the place of the decision maker’s insights and judgment.

4

A company updates the payroll master file at the end of the week. The payroll time cards are transported to the computer center for processing. The sequence of events followed by the computer center in updating its master file should be
A Batching records of transactions, converting to machine-readable form, validating input, updating the master.
B Batching records of transactions, validating input, converting to machine-readable form, updating the master.
C Converting to machine-readable form, batching records of transactions, validating input, updating the master.
D Validating input, batching records of transactions, converting to machine-readable form, updating the master.

A Batching records of transactions, converting to machine-readable form, validating input, updating the master.
This answer is correct.
Batching is the collection and grouping of similar input records for processing. Information must be converted to machine language so the computer can read it. Validating input is checking the validity of account numbers, customer numbers, etc., included in the batched input records. The master file contains current or almost current records. The transaction (i.e., batch) file must be processed against the master file to bring the almost current records to a current state.

5

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?
A Online information storage system.
B Online transaction-processing system.
C Online executive information system.
D Online analytical processing system.

D Online analytical processing system.
This answer is correct.
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.

6

An enterprise resource planning (ERP) system has which of the following advantages over multiple independent functional systems?
A Modifications can be made to each module without affecting other modules.
B Reduction in costs for implementation and training.
C Increased responsiveness and flexibility while aiding in the decision-making process.
D Increased amount of data redundancy since more than one module contains the same information.

C Increased responsiveness and flexibility while aiding in the decision-making process.
This answer is correct.
ERP is the latest phase in the development of computerized systems for managing organizational resources. ERP is intended to integrate enterprise-wide information systems by creating one database linked to all of an organization’s applications. The current generation of ERP software connects the organization with customers, suppliers, owners, creditors, and strategic allies. This increased integration allows for quicker response time and more flexibility.
View Subunit 11.4 Outline

7

Which one of the following features is least likely to apply to the transaction processing cycle of an accounting information system?
A Data records are chiefly historical in nature.
B Most of the sources of data are an organization’s recurring transactions.
C Data records are the basis of predictive systems.
D Data are usually financial in nature.

C Data records are the basis of predictive systems.
This answer is correct.
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 historical 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. An AIS does not typically use records based on predictive systems, which would be a feature of a decision support system.
View Subunit 11.4 Outline

8

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 Printout of the sales price master file.
B Report showing overdue accounts receivable.
C Printout of the updated inventory records.
D Report showing exceptions and control totals.

D Report showing exceptions and control totals.
This answer is correct.
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.
View Subunit 11.3 Outline

9

A decision support system

A. Improves management productivity by automating the decision-making process.
B. Searches for unexpected relationships among data.
C. Allows for certain aspects of a problem to be preprogrammed.
D. Provides immediate information about an organization’s critical success factors.

C. Allows for certain aspects of a problem to be preprogrammed.
Answer (C) is correct.
A decision support system (DSS) does not automate a decision or provide structured information flows but rather allows for certain aspects of the problem to be preprogrammed and provides tools for an end user to employ in applying insight and judgment
(11.5.69)

10

Devices that are used only to perform sequential file processing will not permit

A. The use of a database structure.
B. Batch processing to be initiated from a terminal.
C. Data to be edited in an offline mode.
D. Data to be edited on a real-time basis.

D. Data to be edited on a real-time basis.
Answer (D) is correct.
In an online, real-time system, direct (random), not sequential, access to files is required. As each transaction is entered, it is edited (validated). Files can then be immediately updated to reflect that transaction. Sequential file access is typical of (but not required in) batch processing.
(11.2.20)

11

The current generation of ERP software (ERP II) may include an advanced planning and scheduling system that

A. Connects the organization with other members of a joint venture.
B. Determines the location of retail outlets.
C. Controls the flow of a manufacturer’s materials and components through the supply chain.
D. Permits tracking of orders by customers.

C. Controls the flow of a manufacturer’s materials and components through the supply chain.
Answer (C) is correct.
An advanced planning and scheduling system may be an element of a supply chain management application for a manufacturer. It controls the flow of materials and components within the chain. Schedules are created given projected costs, lead times, and inventories.
(11.4.59)

12

Which one of the following statements about an accounting information system (AIS) is false?

A. AIS is often referred to as a transaction processing system.
B. The information produced by AIS is made available to all levels of management for use in planning and controlling an organization’s activities.
C. AIS is best suited to solve problems where there is great uncertainty and ill-defined reporting requirements.
D. AIS supports day-to-day operations by collecting and sorting data about an organization’s transactions.

C. AIS is best suited to solve problems where there is great uncertainty and ill-defined reporting requirements.
Answer (C) is correct.
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 decision support system is a better choice for problems in which decision making is less structured.
(11.4.50)

13

The system that permits the computers in a distributed network to share the use of another end-user’s application program is

A. Electronic data interchange.
B. Interactive processing.
C. Executive support system.
D. Cooperative processing.

D. Cooperative processing.
Answer (D) is correct.
Cooperative processing is a system whereby computers in a distributed network can share the use of application programs belonging to another end user. The system assigns different machines the functions they perform best in executing a transaction-based application program. For example, a personal computer might be used to enter and validate data for the application, and a server might handle file input and output.
(11.2.26)

14

Which one of the following distinguishes a management information system from a transaction processing system?

A. Automation of routine transaction processing.
B. Capability to provide data for decision-making support.
C. Production of reports to support operations.
D. Maintenance of a structured database.

B. Capability to provide data for decision-making support.
Answer (B) is correct.
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.
(11.4.52)

15

Which of the following features is classified as part of an expert system?

A. Automatic obligation of budget funds as soon as an order is issued.
B. Automatic placement of orders with suppliers who currently offer the best combination of price, freight cost, and delivery time.
C. Use of electronic mail to route and approve purchase requisitions.
D. Issuance of purchase requisition notices as soon as the on-hand balance reaches the reorder point.

B. Automatic placement of orders with suppliers who currently offer the best combination of price, freight cost, and delivery time.
Answer (B) is correct.
The automatic placement of orders with the best combination of price, freight, and delivery time requires the maintenance of a database for all suppliers that is constantly changing as terms and conditions change. It simulates the decision process used by purchase managers
(11.5.74)

16

The processing in expert systems is characterized by

A. Algorithms.
B. Deterministic procedures.
C. Simulations.
D. Heuristics.

D. Heuristics.
Answer (D) is correct.
Knowledge-based (expert) systems contain a knowledge base for a limited domain of human expertise and inference procedures for the solution of problems. They use symbolic processing based on heuristics rather than algorithms. A heuristic procedure is an exploratory problem-solving technique that uses self-education methods, e.g., the evaluation of feedback, to improve performance. These systems are often very interactive and provide explanations of their problem-solving behavior.
(11.5.72)

17

Enterprise resource planning (ERP) software packages, such as SAP R/3 and Oracle, are all-inclusive systems that attempt to provide entity-wide information. ERP systems provide advantages to an organization’s auditors because they

A. Have been installed by smaller firms so, to date, few auditors have encountered them.
B. Typically have built-in transaction logs and ability to produce a variety of diagnostic reports.
C. Have proven difficult for some firms to install.
D. Typically require firms to reduce the division of duties and responsibilities found in traditional systems.

B. Typically have built-in transaction logs and ability to produce a variety of diagnostic reports.
Answer (B) is correct.
ERP systems have a variety of controls and report generation functions that allow auditors to abstract and monitor data collected and processed. Some ERP systems have built-in audit functions.
(11.4.60)

18

In an effort to recognize improvement opportunities, a company is reviewing its in-house systems. The best reason for the company to consider switching to cloud computing as a solution is that it

A. Is accessible only from within the company on its intranet.
B. Provides better program modification options.
C. Is the best way to secure sensitive corporate information.
D. Usually has lower upfront costs for equipment and maintenance.

D. Usually has lower upfront costs for equipment and maintenance.
Answer (D) is correct.
With cloud computing, organizations are relieved of the need to manage the storage of both application and data. It is typically pay-per-use and self serviced. Hence, it usually has lower upfront costs for equipment and maintenance.
(11.1.3)

19

A computer network has the ability to produce output on laser printers in departments. Users specify where their output is to be printed, but some users give the wrong destination code and tie up others’ printers needlessly. The best approach for ensuring that printing occurs on the right device is to

A. Put all the printers in one location so that it is irrelevant which device does the printing.
B. Train current users in how to specify the right designation codes for their printing.
C. Create destination defaults for printing based on each employee’s departmental affiliation.
D. Permit departments to cancel printing that does not belong to one of its employees.

C. Create destination defaults for printing based on each employee’s departmental affiliation.
Answer (C) is correct.
A default setting is an automatic setting in a program. The user is not required to enter the information unless (s)he wants to change it. Thus, if defaults are created based on employees’ departmental affiliations, users will not have the opportunity to enter incorrect codes.
(11.2.16)