Deck 15: Software

Question 1

Describe the purposes of a Gantt chart and a network diagram. Which should be prepared first? Why?

Answer 1

Purpose of Gantt chart
The main purpose of a Gantt chart is to break a big project into smaller tasks in an organized way. The Gantt chart represents the time at which a task is initiated and the time taken by the task in its completion. In other words, it shows budgeted time required for each task.
Purpose of network diagram
It is used to represent the activities which define the sequence of the tasks. It shows the path of a project. It also represents the responsibilities of each task. It is used to show how the work of a project goes.
Network diagram should be prepared first because it is logical way of outlining all the tasks ahead of initiating a project. Network diagram gives the bigger picture of the project.

Question 2

Describe the best composition for an implementation project team. Justify your answer.

Answer 2

Composition for an implementation project team
The team composition is one of the most critical tasks in any project. It is not the number of people that matters but it is the experience and maturity of the team members. The implementation project team composition should represent all the functional areas where the software will be implemented. Integration of the consultants is also done as the member of the team.
Consultants should share their expertise and should help in the implementation process. These consultants should act as supporters not as leaders. Employee with the knowledge and leadership abilities should head the project team. This employee should be from the AIS (Accounting Information System) function because he has the experience of all the functional areas of business. Project head could be from the management because of the global view of the business.

Question 3

A new AIS should:
a. conform to the present structure and business processes of the organization.
b. result in a reduction in the cost of obtaining and processing data.
c. cause the project team to reevaluate the present structure and business processes of the organization.
d. result in a migration from the mainframe model to the client-server model.

Answer 3

a. Result in the reduction in the cost of obtaining and processing data.
New AIS (Accounting Information System) should result in the reduction in the cost of obtaining and processing data. The principal reasons a company adopts new AIS (Accounting Information System) is to achieve cost savings in the business operations of the company. In Accounting Information System, the software does most of the work that would require so many employees. In this way it saves cost of obtaining and processing data for the company.

Question 4

Describe some sources of information regarding vertical market accounting software.

Question 5

Describe some sources of information regarding horizontal market accounting software.

Question 6

What are accounting VARs, and what services can they provide an organization needing a new AIS?

Question 7

Which of the following is not a popular mid-market accounting system software package?
a. Microsoft Dynamics GP
b. Peachtree by Sage
c. Sage AccPac Extended Enterprise Suite
d. SAP ERP

Question 8

The content of demonstrations should be planned by:
a. the vendor.
b. a subcommittee of the project team.
c. the project team leader.
d. the consultant.
e. the consultant and the vendor.

Question 9

What were some benefits to Grace in using a VAR?

Question 10

What is a demonstration "script"? Write a script that will illustrate the recording of customer remittances for open item customers using both pre-identification and post-identification.

Question 11

The principal reasons a company adopts a new AIS is to achieve:
a. better customer service.
b. cost savings in the business operations of the company.
c. positive impact on revenues.
d. b and c.
e. a, b, and c.

Question 12

Why should the product and financial stability of the companies that are on your short list of AISs be investigated?

Question 13

Because Grace purchased packaged AIS modules, what specific work did programmers have to do?

Question 14

Why are many AISs adopted even though they are more costly than the systems they replaced?

Question 15

What is the name of the software vendor that was started by five engineers who had worked as a team at IBM?
a. Oracle
b. Lawson Software
c. SAP AG
d. The Sage Group

Question 16

If a company has very talented computer personnel who have years of experience in using computerized accounting systems, should the company purchase a support agreement from the software vendor? Why or why not?

Question 17

What are some choices that the VAR has as to conversion methodologies?

Question 18

A problem (or problems) that may be encountered in migrating data from the old to the new system include:
a. the electronic media may be different.
b. the binary coding systems may be different.
c. some data may be on electronic media while other data are on paper.
d. all of the above are problems that may be encountered.

Question 19

Why do many CPAs advise against modifying packaged AISs so that they better fit a company's operations?

Question 20

Merchantability clauses:
a. state the purposes for which the product can be legally used.
b. deny any warranty that the product will perform the functions for which it was designed.
c. deny any warranty if the product is transferred to another party.
d. describe in detail the licensing agreement.

Question 21

Discuss the various issues that must be considered in an implementation plan for ESI. Outline the steps of what you believe to be a good plan.

Question 22

Jose acquired a new AIS for his medical supplies company that serves small hospitals in western Colorado and Utah. The system ran smoothly for 6 months, and then the billing program would bomb out every time his accountant tried to execute it. His VAR disclaimed any responsibility because Jose did not have a support agreement. The software was developed by a Canadian-based company that just filed for bankruptcy. Because he was unable to bill his customers, Jose fell behind in paying suppliers and defaulted on a $5,000 note to his bank. The suppliers cut off his credit, refusing to ship orders, and the bank then called all of Jose's loans and froze his cash account. Jose was unable to meet the payroll, and most of his employees left. Yesterday, Jose filed for bankruptcy and also filed suit against the VAR for $1,000,000 actual damages and $2,000,000 punitive damages, because the inability to bill triggered the series of events.

Question 23

Discuss the relative merits of a single supplier for an AIS system versus multiple suppliers.

Question 24

Discuss the various conversion methodologies. Your discussion should consider the following questions: (a) Are they mutually exclusive? (b) How might some of them be combined? (c) Which ones are opposites?