Systems Analysis and Design Quiz

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Questions and Answers

Which documentation technique is MOST focused on representing the relationships between different parts of a system?

Program Flowchart

Data Flow Diagram

Entity Relationship Diagram (correct)

System Flowchart

In the REA model, which of the following is considered an 'event'?

Inventory Control Clerk

Release of raw materials into the production process (correct)

Vendor

Cash

What does cardinality in an Entity Relationship Diagram represent?

The different process flows in the system

The different types of data used in a system

The physical layout of the system

The numerical mapping between entities (correct)

Which of the following best describes a Data Flow Diagram?

A graphical representation of data flow including data sources, destinations, and processes. (A) Signup and view all the answers

What is the purpose of a context diagram in Data Flow Diagrams?

To give a summary-level view of a system, its inputs, outputs and their origins. (B) Signup and view all the answers

Which of the following is NOT true about Flowcharts?

They are used to describe the data flow within an organization. (D) Signup and view all the answers

Which documentation technique shows the most detail about the processes in a system?

Flowchart (D) Signup and view all the answers

If an entity 'Customer' and 'Order' have the cardinality '1 to M', it means:

One customer can place multiple orders. (D) Signup and view all the answers

Which type of flowchart specifically demonstrates the flow of documents and information across departments?

Document flowchart (A) Signup and view all the answers

What do processing symbols in a flowchart represent?

Data manipulation processes or operations (B) Signup and view all the answers

Which of the following best describes the primary use of an internal control flowchart?

To assess and improve internal control effectiveness (A) Signup and view all the answers

In a business process diagram (BPD), what is the main focus?

The steps and activities within a business process (A) Signup and view all the answers

What is the main reason why an organization would be involved in the system development process?

To keep up with competitive and evolving environment (D) Signup and view all the answers

Which of these is an example of a system development process?

Planning the implementation of a new system (C) Signup and view all the answers

Which type of symbol is used to represent data storage in a flowchart?

Storage symbols (D) Signup and view all the answers

What is indicated by flow and miscellaneous symbols in a flowchart?

The path of data and its beginning and ending points (A) Signup and view all the answers

What is the primary purpose of system documentation?

To visually explain the functional components and interactions of a system. (B) Signup and view all the answers

Which of the following is NOT a typical method of documenting a system?

Code Repositories (C) Signup and view all the answers

Why are visual images often preferred over written descriptions when documenting a system?

Visual images often convey system information more effectively and efficiently. (B) Signup and view all the answers

What is a 'turnkey system' regarding commercial software?

A system that is fully ready to use upon purchase with minimal need for customization. (C) Signup and view all the answers

What is the first step in the system development process?

System Investigation (C) Signup and view all the answers

Which of these is NOT considered a core phase in system development processes?

Marketing (C) Signup and view all the answers

What is the purpose of system documentation for an auditor?

To understand how a system works to evaluate control strengths and weaknesses. (A) Signup and view all the answers

Which documentation tool represents the flow of data and processes within a system?

Data Flow Diagram (DFD) (C) Signup and view all the answers

Which of the following is NOT a typical reason for a company to change its systems?

Reduced competition (B) Signup and view all the answers

What is the primary advantage of effective systems planning?

Ensures goal alignment between projects and the organization's strategic plan (B) Signup and view all the answers

Which plan contains a cost-benefit analysis and schedule for a new application development?

Project development plan (B) Signup and view all the answers

What is the purpose of the information systems steering committee in system development?

To create a plan specifying what the system will consist of, how it will be developed, who will develop it, how needed resources will be acquired, and where the AIS is headed (B) Signup and view all the answers

Which of the following is a technique for scheduling and monitoring systems development activities?

PERT charts (B) Signup and view all the answers

In a PERT diagram, what does the 'critical path' represent?

The path requiring the greatest amount of time to complete a project (B) Signup and view all the answers

Which of the following is a key advantage of system planning as it relates to financial planning?

It prepares management for resource needs (B) Signup and view all the answers

What is a direct benefit of using effective project development plans?

Duplication, wasted effort, and cost and time overruns are avoided. (A) Signup and view all the answers

What is the primary purpose of project planning in the context of a strategic plan?

To allocate resources to individual applications. (A) Signup and view all the answers

When should a formal project proposal be prepared in the typical project planning process?

After defining the problem and determining the system objectives. (D) Signup and view all the answers

What is a primary limitation or drawback of using Gantt charts for project planning?

They do not show relationships among project activities. (A) Signup and view all the answers

Within a feasibility study, what does checking for 'legal feasibility' primarily entail?

Ensuring the system complies with relevant laws and regulations. (A) Signup and view all the answers

What is a key feature of a Gantt chart that assists in project management?

It displays the time each activity is expected to take using a bar graph (D) Signup and view all the answers

What does 'operational feasibility' primarily assess in a feasibility study?

The willingness of people to use the system and availability of skilled personnel. (B) Signup and view all the answers

Which of the following best describes the concept of shifting resources to critical path activities in project management?

Reallocating resources to reduce overall project time. (A) Signup and view all the answers

What is the purpose of determining the 'economic feasibility' during a project feasibility study?

To verify if the benefits of the system justify the necessary resources. (C) Signup and view all the answers

What is the primary purpose of a capital budgeting model?

To compare estimated benefits and costs to assess cost-effectiveness. (B) Signup and view all the answers

Which capital budgeting technique calculates the time it takes for an investment's net savings to equal its initial cost?

Payback period. (D) Signup and view all the answers

What does a positive Net Present Value (NPV) generally indicate about a project?

The alternative is economically feasible. (D) Signup and view all the answers

Which capital budgeting technique calculates the effective interest rate that results in a Net Present Value (NPV) of zero?

Internal rate of return (IRR). (A) Signup and view all the answers

In a feasibility study, what is the main focus of economic feasibility?

Comparing estimated benefits and costs to assess cost-effectiveness. (A) Signup and view all the answers

What distinguishes a feasibility study from a capital budgeting model?

A feasibility study is an investigation conducted before capital budgeting to determine the viability of a project. (D) Signup and view all the answers

Which of the following is NOT a key aspect considered during a feasibility study?

Operational feasibility. (B) Signup and view all the answers

If a project has a negative Net Present Value (NPV), what decision should typically be made, based on the information provided?

The project should be rejected as it is not economically feasible. (A) Signup and view all the answers

Study Notes

Chapter III: System Development Process

This chapter covers the system development process
It includes system development and documentation tools and techniques, such as Data Flow Diagrams (DFD) and flowcharts
It also details system development processes, including methodology, system investigation, planning, analysis, design, and implementation

Acquisition of Information Systems

Customized systems can be developed from scratch
Pre-designed commercial systems can be purchased
Three types of commercial software are: turnkey systems, backbone systems, and vendor-supported systems

System Development and Documentation Tools and Techniques

Documentation describes how a system works, including data entry, processing, storage, output, and controls
Popular documentation methods include diagrams, flowcharts, tables, and other graphical representations
A narrative explanation of system components and interactions supplements the visuals

Why Documentation is Important

"A picture is worth a thousand words" – visual documentation is more effective than lengthy written descriptions
Documentation is essential for system analysis and troubleshooting
Accountants routinely use system documentation as part of their job roles

Documentation Techniques

Common documentation techniques include:
- Entity Relationship Diagrams (ERD)
- Data Flow Diagrams (DFD)
- Flowcharts:
  - Document flowcharts
  - System flowcharts
  - Program flowchart

Entity Relationship Diagram (ERD)

A technique for representing the relationships between entities in a system
The REA model is often used in ER Diagrams in Accounting Information Systems (AIS)
Entities are of three types:
- Resources (cash, raw materials)
- Events (release of materials)
- Agents (employees, vendors)

Cardinalities

Represents the numerical mapping between entities
Relationships can be one-to-one, one-to-many, or many-to-many

Data Flow Diagrams (DFD)

A graphical representation of data flow within an organization
Includes data sources, destinations, data flows, transformation processes, and data storage
Does not represent the physical system
Context diagrams (level 0 diagrams) are the highest-level DFDs; they summarize a system's inputs, outputs, sources, and destinations
DFDs contain:
- Data sources and destinations
- Data flows
- Transformation processes
- Data stores
- Internal controls

Flowcharts

A pictorial, analytical method for describing information systems
Show how business processes are performed and how documents flow within an organization
Flowcharting symbols are categorized as:
- Input/output symbols
- Processing symbols
- Storage symbols
- Flow and miscellaneous symbols

Types of Flowcharts

Document flowcharts: illustrate document and data flow across departments
System flowcharts: show the relationships between inputs, processing, and output
Program flowcharts: depict the sequence of logical operations during program execution

System Development Processes

Steps involved in developing systems: methodology, system investigation, planning, analysis, design, implementation

Why System Development Is Important

Changing business needs, user needs, and technology drive system development
The need to replace older systems

Systems Development Life Cycle (SDLC)

A series of steps in developing and implementing systems: Systems Analysis, Conceptual Design, Physical Design, Implementation and Conversion

Planning for System Development

Planning ensures that system goals align with the organization's strategic plan
Effective planning avoids duplication of effort and cost overruns in project development
Two system development plans:
- Project development plan: short-term, prepared by the development team to provide a cost-benefit analysis, operational & developmental requirements (people, hardware, software, financial), schedule of activities
- Master plan: long-term plan, prepared by the info systems steering committee to define the system, how it will be developed, who will develop, resources needed, and future direction of the Accounting Information System (AIS).

Planning Techniques

PERT and Gantt charts aid in scheduling and monitoring system development
PERT: used to plan, develop, and coordinate system activities; helps identify and visualize precedence & subsequent activities
Critical path: the PERT path requiring the longest time and crucial for project completion
Gantt chart: visual tool for displaying project activities, time allocated for completion, & progress tracking

Feasibility Study

Investigates the practicality of developing a new application or system
Includes five aspects
- Economic feasibility: determine if system benefits outweigh the costs
- Technical feasibility: evaluate if available technology can support system development
- Legal feasibility: determine if system complies with relevant laws and regulations
- Scheduling feasibility: determine if system implementation is achievable within the allocated timeframe
- Operational feasibility: determine if the organization has the necessary resources and personnel to operate the system

Capital Budgeting for Economic Feasibility

Capital budgeting models (like payback period, net present value, and internal rate of return – IRR) are used to compare benefits and costs for system development projects

Chapter 4: Relational Databases

Discusses the importance and advantages of databases, and differentiates database systems from file-based systems.
Describes database systems, including logical and physical views, schemas, data dictionaries, and Database Management System (DBMS) languages
Explains relational databases, their data organization, and table creation

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Description

Test your knowledge on systems documentation techniques, including REA models, Entity Relationship Diagrams, and Flowcharts. This quiz covers important concepts and their applications in business processes and system development. Perfect for students studying systems analysis and design.