Accounting Information Systems
11th Edition
ISBN: 9781337552127
Author: Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill
Publisher: Cengage Learning
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Chapter 8, Problem 8DQ
“Contracting for a hot site is too cost-prohibitive except in the rarest of circumstances. Therefore, the vast majority of companies should think in terms of providing for a cold site at most.” Discuss fully.
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Chapter 8 Solutions
Accounting Information Systems
Ch. 8 - What are the four major categories of pervasive...Ch. 8 - What are the differences among a pervasive control...Ch. 8 - Prob. 3RQCh. 8 - Describe some compensating controls that can be...Ch. 8 - What are policy controls plans? How do policies...Ch. 8 - Why should an organization conduct monitoring...Ch. 8 - Prob. 8RQCh. 8 - Prob. 10RQCh. 8 - What are the major elements of the strategic IT...Ch. 8 - Prob. 12RQ
Ch. 8 - Prob. 13RQCh. 8 - What are the four stages through which a program...Ch. 8 - What steps are commonly included in a business...Ch. 8 - Prob. 16RQCh. 8 - Prob. 17RQCh. 8 - Prob. 18RQCh. 8 - Prob. 19RQCh. 8 - Prob. 20RQCh. 8 - Prob. 21RQCh. 8 - Prob. 22RQCh. 8 - Prob. 23RQCh. 8 - Prob. 24RQCh. 8 - Prob. 25RQCh. 8 - Prob. 26RQCh. 8 - Prob. 27RQCh. 8 - Prob. 28RQCh. 8 - Prob. 29RQCh. 8 - Prob. 30RQCh. 8 - Prob. 31RQCh. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - No matter how sophisticated a system of internal...Ch. 8 - Prob. 4DQCh. 8 - Prob. 5DQCh. 8 - Prob. 6DQCh. 8 - Prob. 7DQCh. 8 - Contracting for a hot site is too cost-prohibitive...Ch. 8 - Prob. 9DQCh. 8 - Prob. 10DQCh. 8 - Prob. 11DQCh. 8 - The following is a list of six control plans from...Ch. 8 - Prob. 2SPCh. 8 - Prob. 3SPCh. 8 - Prob. 2PCh. 8 - The following is a list of 13 control plans from...Ch. 8 - Prob. 4PCh. 8 - Prob. 5PCh. 8 - Prob. 6PCh. 8 - Examine the last column in Table 8.2 (p. 280) for...
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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_forwardWhich of the following statements is false with respect to replacement analysis? a. Functional obsolescence is the only type of obsolescence that should be considered in a replacement analysis. b. A changing external environment can lead to the need for a replacement analysis. c. Companies frequently use equipment long after a replacement would be economically justified. d. In a replacement analysis, the current asset is referred to as the defender.arrow_forwardAssume that you produce plastic computer pieces for computer companies. The pieces require very little technology. Where would you like to establish DFI? (The point of this question is to force consideration of various characteristics that are incorporated in a DFI decision.)arrow_forward
- Which of the following R&D costs can be capitalized by an SME? Group of answer choices Conceptual formulation and design of possible product or process alternatives None of the choices Design, construction, and testing of preproduction prototypes and models Laboratory research aimed at discovering or obtaining new knowledgearrow_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_forwardWhich of the following statements is false? The different lives 'problem' in the constant chain of replacement model arises only for independent projects. The constant chain of replacement model assumes that the incumbent machines and their replacements are absolutely identical. None of the given options is false. The constant chain of replacement assumption may be used to evaluate projects of unequal lives.arrow_forward
- A manufacturing firm identified that it would have difficulty sourcing raw materials locally, so it decided to relocate its production facilities. According to COSO, this decision represents which of the following responses to the risk? A. Risk reduction. B. Prospect theory. C. Risk sharing. D. Risk acceptance.arrow_forwardWhich of the following statements about unbalanced bids is correct? An owner may reject a heavily unbalanced bid as an irregular bid Owners may sometimes accept a small amount of front-end unbalancing so a contractor can finance the early stages of a project Unbalancing a bid to take advantage of an owner’s error is unethical Unbalanced bids are not a problem - the owner pays the same as with a balanced bidarrow_forwardWhich of the following is likely to be used to reduce the cost of reworking products? a. Activity sharing b. Activity elimination c. Activity reduction d. Activity selectionarrow_forward
- Explain how long-term contractual relationships with suppliers can reduce the acquisition cost of materials.arrow_forwardConsider an organisation that wishes to select a vendor to supply a software package. The requirements will be complex, and the client will need considerable help from the vendor to configure and implement the software. Which one of the following actions would you advise against the client doing? Collect user requirements after the vendor has been selected, but before gap analysis Consider engaging the selected vendor in a software maintenance contract after the package has been successfully implemented Perform due diligence before selecting a vendor Put out an RFP to short-listed vendor candidatesarrow_forwardWhich of the following is not an advantageous reason to reduce inventories? a. Inventories provide a competitive advantage. b. Inventories can invite overproduction. c. Inventories are expensive to maintain. d. Inventories may conceal problems. e. All of these are good reasons to reduce inventories.arrow_forward
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