Accounting Information Systems
9th Edition
ISBN: 9781133934400
Author: James A. Hall
Publisher: Cengage Learning
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Question
Chapter 14, Problem 7MCQ
To determine
Identify the statement which is not an advantage of commercial software.
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Chapter 14 Solutions
Accounting Information Systems
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- There are three options for the software package solution. Although all three packages are considered to be adequate for the intended purpose, there are licensing and pre-installation customization fees that differ between the potential solutions. Accordingly, there are also differences in how much incremental revenue the software will create – through increased revenue opportunities as well as cost savings. It is anticipated that the risk level of the project will be associated with the level of customization required – the more customization, the higher the risk that something will go wrong. For the three options, use an appropriate financial measurement to identify the correct software solution. Your company’s finance department has instructed you to use the following rates based on differing levels of risk: High risk: 20% Medium risk: 12% Low risk: 5% Software License fee Customization Estimated annual benefit Number of years in service Option A 1,400,000 350,000 185,000 10…arrow_forwardIntangible benefits are usually extremely difficult to quantify accurately. Some designers argue that if you understate them, then conservative estimates are produced. Any excess benefits will be greatly welcomed but not required for the new system to be a success. What are the dangers of this viewpoint?arrow_forwardUser acceptance testing is more important in an object-oriented development process than in a traditional environment because of the implications of thea. absence of traditional design documents.b. lack of a tracking system for changes.c. potential for continuous monitoring.d. inheritance of properties in hierarchies.arrow_forward
- What exactly are the advantages and disadvantages of turnkey systems?arrow_forwardSoftware development costs are capitalized if they are incurred: Select one: a. None of the other answers is correct. b. Prior to the point at which technological feasibility has been established. c. I want to leave this question blank d. After commercial production has begun. e. After technological feasibility has been established but prior to the product availability date.arrow_forwardDescribe the difference between cost-saving and cost-increasing technology-based innovations. Provide an example of each and analyze why a cost-increasing innovation would continue to be used.arrow_forward
- What are the benefits and drawbacks of turnkey systems?arrow_forwardWhat are some of the reasons that ABM implementation may lose the support of highermanagement?arrow_forwardSometimes, a newly implemented AIS may not receive proper support from the users. These behavioural could take in the form of resisting this change. Explain TWO (2) reasons why this resistance occur and recommend TWO (2) approaches that companies can implement to reduce this resistance.arrow_forward
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