Deck 15: Dicision Making Models and Knowledge Management

Question 1

Which of the following statements about technology and knowledge management is most true?

A) Technology can facilitate knowledge management.
B) Knowledge management can facilitate technology.
C) Technology is required in knowledge management systems.
D) Knowledge management systems do not include technology.

Answer 1

A

Question 2

Which element of Steps for Better Thinking focuses on choosing and implementing solutions?

A) Foundation.
B) Identifying.
C) Envisioning.
D) Prioritizing.

Answer 2

D

Question 3

Newspapers are easier to read than textbooks, illustrating which of the following causes of information overload?

A) Information characteristics.
B) Information technology.
C) Task parameters.
D) Organizational design.

Answer 3

A

Question 4

Which element of Steps for Better Thinking focuses on interpreting and organizing information?

A) Exploring.
B) Identifying.
C) Envisioning.
D) Prioritizing.

Question 5

Every year, David promises himself to file his taxes as soon as possible. But, inevitably, he waits until the last minute. David's behavior is an example of:

A) Satisficing.
B) Bounded rationality.
C) Relapse error.
D) Information overload.

Question 6

Denise had memorized rules about making adjusting entries in the accounting information system. She continued to use those rules, even when they failed to produce the best outcome possible. Her behavior is an example of:

A) Satisficing.
B) Bounded rationality.
C) Relapse error.
D) Information overload.

Question 7

When a person has to make a decision quickly, ___ may cause information overload.

A) Personal factors.
B) Information parameters.
C) Task and process parameters.
D) Information technology.

Question 8

Mike was auditing the accounting information system of FBN Corporation. He wanted to select a sample of transactions to verify; rather than considering all the possible choices, he used a sampling method he found easiest in school. Mike's behavior is an example of:

A) Satisficing.
B) Bounded rationality.
C) Relapse error.
D) Information overload.

Question 9

Which element of Steps for Better Thinking focuses on acquiring background knowledge and skills?

A) Foundation.
B) Identifying.
C) Exploring.
D) Prioritizing.

Question 10

Phil, a corporate controller, was preparing a comprehensive presentation of his firm's financial statements for the board of directors. He suspected some members of the board would experience information overload. Which of the following countermeasures could Phil employ most effectively to reduce information overload for his audience?

A) Create small, self-contained tasks.
B) Improve personal time management skills.
C) Define decision rules.
D) Use graphs and visual aides.

Question 11

Information overload can be caused by all of the following except:

A) Information design.
B) Information technology.
C) Organizational design.
D) Information characteristics.

Question 12

___ can cause information overload simply by increasing the amount of available information.

A) Organizational design.
B) Process parameters.
C) Information characteristics.
D) Information technology.

Question 13

Working in groups frequently leads to information overload because of:

A) Information technology.
B) Organizational design.
C) Task parameters.
D) Personal factors.

Question 14

Peter created an online database for his company's computer network. If anyone inside the firm can search the database without entering a user name or password, it is fulfilling which objective of knowledge management?

A) To improve knowledge access.
B) To create knowledge repositories.
C) To cause a shift in organizational culture.
D) To manage knowledge as an asset.

Question 15

The organization of intellectual resources and information systems within a business environment is often referred to as:

A) A decision making model.
B) Knowledge management.
C) The accounting information system.
D) Systems analysis and design.

Question 16

Phil, a corporate controller, was preparing a comprehensive presentation of his firm's financial statements for the board of directors. He suspected some members of the board would experience information overload, so he wanted to focus on creating value-added information as a strategy for reducing it. Which of the following is the best example of value-added information in this context?

A) An explanation of the company's inventory cost flow assumption (FIFO, LIFO).
B) The difference between the direct and indirect methods of computing cash flow from operations.
C) The percentage change in this year's net income compared to last year's.
D) A list of steps in the accounting cycle.

Question 17

The first step in creating a knowledge management system is:

A) Define business goals.
B) Create an appropriate organizational culture.
C) Perform a knowledge audit.
D) Create a mental model.

Question 18

Knowledge management is the process through which organizations generate value from what kind(s) of assets: (i) monetary, (ii) intellectual, (iii) knowledge-based.

A) i and ii only.
B) ii and iii only.
C) i and iii only.
D) i, ii and iii.

Question 19

Which element of Steps for Better Thinking focuses on finding relevant information and acknowledging uncertainties?

A) Foundation.
B) Identifying.
C) Envisioning.
D) Prioritizing.

Question 20

Which of the following is the least appropriate business goal for a knowledge management system?

A) Improving customer service.
B) Justifying employee layoffs.
C) Enhancing competitive advantage.
D) Developing employee-training plans.

Question 21

Decision makers can avoid information overload caused by organizational design by:

A) Using information technology.
B) Working alone.
C) Satisficing.
D) Avoiding relapse errors.

Question 22

Mike had recently finished his accounting degree, and was considering which professional journals he should subscribe to in his career. He purchased ten different journals and read the first article in each one, then made his decision. His behavior is an example of:

A) Limited information search strategies.
B) Arbitrary information analysis.
C) Suboptimal decisions.
D) Strenuous personal situations.

Question 23

Satisficing, bounded rationality and relapse errors
A group of accounting students was discussing which elective courses they should take as part of their degree; several comments from their conversation appear below. Place an "X" in the appropriate column to indicate whether each comment most clearly demonstrates satisficing, bounded rationality or relapse errors.

Question 24

Each year, employees in the accounting department of TCB Corporation discuss the upcoming year's budget with their department manager. Those discussions best fulfill which objective of knowledge management systems?

A) Creating a knowledge repository.
B) Improving knowledge access.
C) Enhancing the knowledge environment.
D) Managing knowledge as an asset.

Question 25

Mike had recently finished his accounting degree, and was considering which professional journals he should subscribe to in his career. He purchased two journals and read all the articles in each one, then made his decision. His behavior is an example of:

A) Limited information search strategies.
B) Arbitrary information analysis.
C) Suboptimal decisions.
D) Strenuous personal situations.

Question 26

Which of the following could be accurately described as a decision model: (i) debit and credit rules, (ii) weighted rating software technique.

A) i only.
B) ii only.
C) Both i and ii.
D) Neither i nor ii.

Question 27

Steps for Better Thinking
Indicate which level of Steps for Better Thinking is described by each of the following items.
_________
a. Acquire background knowledge and skills
_________
b. Choose and implement solutions.
_________
c. Deal with limitations to the solution.
_________
d. Identify the problem, relevant information and uncertainties.
_________
e. Interpret and organize the information.

Question 28

Knowledge management systems
Place an "X" in the appropriate column to indicate whether each of the following independent statements about knowledge management is true

Question 29

Betsy and Molly had identified three business goals for their company's knowledge management system. Their supervisor asked them which goal was most important. Betsy and Molly would use the ___ level of Steps for Better Thinking to answer the supervisor's question.

A) Foundation.
B) Identifying.
C) Exploring.
D) Prioritizing.

Question 30

One step in creating a knowledge management system involves creating an appropriate organizational culture. Learning about the elements of corporate culture would be an activity in which part of Steps for Better Thinking?

A) Foundation.
B) Identifying.
C) Exploring.
D) Prioritizing.

Question 31

Steps for Better Thinking comprises four steps after its foundation level. Which of the following is most representative of Level Three?

A) Creating a plan to train employees on the new system.
B) Deciding between a view-driven system and an event-driven system.
C) Grouping information obtained through employee interviews into several categories.
D) Recognizing the need for a new accounting information system.

Question 32

Mike had recently finished his accounting degree, and was considering which professional journals he should subscribe to in his career. He purchased several journals and read all the articles in each one right after finishing the CPA exam, then made his decision. His behavior is an example of:

A) Limited information search strategies.
B) Arbitrary information analysis.
C) Suboptimal decisions.
D) Strenuous personal situations.

Question 33

Matt needed to estimate uncollectible receivables as part of a financial statement audit. According to Steps for Better Thinking, which of the following should Matt do first?

A) Calculate the estimate.
B) Exclude years where sales were unusually high or unusually low.
C) Graph the net sales and bad debt expense for the last several years.
D) Review the concepts associated with the estimation in an accounting textbook.

Question 34

Steps for Better Thinking comprise four steps after its foundation level. Which of the following is most representative of Level One?

A) Creating a plan to train employees on the new system.
B) Deciding between a view-driven system and an event-driven system.
C) Grouping information obtained through employee interviews into several categories.
D) Recognizing the need for a new accounting information system.

Question 35

Marge was creating an Access database to serve as her company's knowledge management system. Which of the following field types is she least likely to use in completing her task?

A) Memo.
B) Currency.
C) Text.
D) Date/time.

Question 36

A student creates an online knowledge management system for evaluating professors at her university. Her system fulfills all the objectives of a knowledge management system except:

A) Creating a knowledge repository.
B) Improving knowledge access.
C) Enhancing the knowledge environment.
D) Managing knowledge as an asset.

Question 37

Which of the following would precede the identifying phase of Steps for Better Thinking: (i) obtaining a college degree, (ii) reading the newspaper.

A) i only.
B) ii only.
C) Both i and ii.
D) Neither i nor ii.

Question 38

Steps for Better Thinking comprise four steps after its foundation level. Which of the following is most representative of Level Two?

A) Creating a plan to train employees on the new system.
B) Deciding between a view-driven system and an event-driven system.
C) Grouping information obtained through employee interviews into several categories.
D) Recognizing the need for a new accounting information system.

Question 39

Matt needed to estimate uncollectible receivables as part of a financial statement audit. According to Steps for Better Thinking, which of the following should Matt do second?

A) Review the concepts associated with the estimation in an accounting textbook.
B) Graph the net sales and bad debt expense for the last several years.
C) Exclude years where sales were unusually high or unusually low.
D) Calculate the estimate.

Question 40

Steps for Better Thinking comprises four steps after its foundation level. Which of the following is most representative of Level Four?

A) Creating a plan to train employees on the new system.
B) Deciding between a view-driven system and an event-driven system.
C) Grouping information obtained through employee interviews into several categories.
D) Recognizing the need for a new accounting information system.

Question 41

Visual map
Part of creating a knowledge management system is creating a visual map of its ideas. Create a visual map that depicts at least three major ideas related to internal control in accounting information systems.

Question 42

The following scenario applies to Questions:
Kay was frustrated. She was auditing a new client for the first time, but the client's accounting information system was in complete disarray. The client, a multi-national corporation, had boxes and filing cabinets full of paper forms in at least three languages. She had been working very long days with her other clients, too. She needed to come up with a plan for making sense of the documents before she could proceed with any of the audit tasks.
Kay has come to you for advice regarding this situation. To help her, explain your personal strategy for making decisions and managing knowledge.

Question 43

The following scenario applies to Questions:
Kay was frustrated. She was auditing a new client for the first time, but the client's accounting information system was in complete disarray. The client, a multi-national corporation, had boxes and filing cabinets full of paper forms in at least three languages. She had been working very long days with her other clients, too. She needed to come up with a plan for making sense of the documents before she could proceed with any of the audit tasks.
Assume Kay has the background information and skills she needs to solve the problem. Use the first three levels of Steps for Better Thinking to advise Kay on how to proceed.

Question 44

Steps for Better Thinking
Arnold and Robin were trying to develop a strong internal control system for their company's acquisition/payment process. Suggest an appropriate question they should ask at each level of the Steps for Better Thinking framework.

Question 45

The following scenario applies to Questions:
Kay was frustrated. She was auditing a new client for the first time, but the client's accounting information system was in complete disarray. The client, a multi-national corporation, had boxes and filing cabinets full of paper forms in at least three languages. She had been working very long days with her other clients, too. She needed to come up with a plan for making sense of the documents before she could proceed with any of the audit tasks.
Kay has decided to create a knowledge management system for her client. Use the four objectives of knowledge management systems discussed in the text to explain to Kay's client what such a system will accomplish.

Question 46

The following scenario applies to Questions:
Kay was frustrated. She was auditing a new client for the first time, but the client's accounting information system was in complete disarray. The client, a multi-national corporation, had boxes and filing cabinets full of paper forms in at least three languages. She had been working very long days with her other clients, too. She needed to come up with a plan for making sense of the documents before she could proceed with any of the audit tasks.
Kay is experiencing information overload. The text identified five common sources of information overload; explain which of the five are related to Kay's specific situation.