Misc Flashcards
Items Included in Disaster Recovery Plans
(1) Recovery priorities
(2) Insurance
(3) Specific assignments
(4) Back up computer and telecommunication facilities
(5) Periodic testing and revision
(6) Complete documentation of all aspects of the system
DR Plan Recovery Priorities Include
(1) Hardware, software, applications, and data necessary to sustain the most critical applications
(2) Sequence and timing of all recovery activities
Disaster Recovery Insurance Needs
(1) Replace equipment lost in disaster
(2) Compensation for lost business operations
Responsibilities of DR Plan Coordinator
(1) Implement disaster recovery plan
(2) Assign individuals and teams specific recovery responsibilities
DR Back Up Computer and Telecommunications Facilities Options
(1) Establish reciprocal agreement with company with compatible facilities so each company can use the others computers if emergency occurs
(2) Sign a contract for a contingent site
Hot Site
Configured to meet user requirements
Cold Site
Has everything needed to quickly install a computer - users rely on their computer vendors for prompt delivery if emergency occurs
Higher Than Expected Average Collection Period Could Indicate the Firm
(1) Has poor collection procedures
(2) Has difficulty obtaining prompt payment from customers even though they’ve made diligent collection effors
(3) Has customers that are experiencing financial difficulty
Example of Internal IT Checks
(1) Limit Check
(2) Identification/ Validity
(3) Sequence Check
(4) Error Log
(5) Transaction Log
(6) Arithmetic Proof
(7) Check Digit
Limit Check
Identifies if data have a value higher or lower than predetermined amount
Identification Check
Determines if data is valid
Error Log
Up-to-date log of all identified errors
Transaction Log
Provides basic audit trail
Arithmetic Proof
Computes calculation in order to validate the result
SWOT Strengths
Internal factors, focus on areas where the company has a comparative advantage because of internally created resources
SWOT Weakness
Represent areas where company is weak or it’s competitors have comparative advantage over the company’s internally created resources
SWOT Opportunities
External factors that involve matching the environment to the organization - can and should be prioritized
SWOT Threats
External in nature, these factors can arise from a competitor or from changes in market demographics; may also be the consequence of an adverse change in one of the company’s necessary inputs
For Differentiation Strategy to be Successful
It must be tied to something that can’t be easily copied
Database
Collection of interrelated information that can be used for a variety of purposes
Database Managed By
Computer program called a database management system (DBMS)
Database Management System (DBMS)
Consists of computer programs for organizing, accessing, and modifying a database
Functional Item
One that performs the tasks or actions it was created for
Systems Administrators Responsibilities
Make sure the information system operates efficiently and effectively
Database Administrators Responsibilities
(1) Planning the database
(2) Defining schemas and subschemas
(3) Selecting appropriate DBMS software
(4) Creating database structure
(5) Establishing policies and procedures for database usage
(6) Teaching users how to work with DBMS
(7) Controlling database activities (design, operation, security)
Input Validation Routines
Test input data as it’s entered into a system to make sure it’s accurate valid
Edit Checks Used in Input Validation
(1) Capacity checks
(2) Field checks
(3 Limit checks
(4) Range checks
(5) Reasonableness tests
(6) Redundant data checks
(7) Sequence checks
(8) Sign checks
(9) Validity checks
(10) Hash total
Capacity Checks
Determine whether data will fit in a field
Field Checks
Tests whether characters are proper types
Limit Checks
Make sure numerical amount doesn’t exceed upper or lower limit
Range Checks
Test for upper and lower limit
Reasonableness Test
Make sure data makes sense when compared to other data
Redundant Data Check
To determine whether two identifiers in a transaction record match
Sequence Check
Test whether input data is in proper numerical or alphabetical sequence
Sign Checks
Test data for appropriate arithmetic sign
Validity Checks
Compare ID numbers or transaction codes to those stored in the system
Hash Total
Set of non-financial numbers not normally totaled are totaled by the system after input and are compared to the total generated by documents themselves
IRS Revenue Ruling 68-608
“The past earnings to which the formula is applied should fairly reflect the probable future earnings”
Integrated Planning
Ensures communication between all stakeholders and affected departments participating in the project
Recessionary Gap
When current level of output is below trend output
Inflationary Gap
When current level of output is above trend output
Guiding Principles of Managerial Accounting
(1) Identifying decisions to be made
(2) Identifying information relevant to decision making process
(3) Organizing information into useful format
Objectives of a Disaster Recovery Plan
(1) Minimize the disruption, damage, and loss from the disaster
(2) Establish a short-term data processing alternative so the company can quickly resume normal operations
(3) Train and familiarize personnel with emergency procedures
Profitability Index Formula
Present value of cash flows not including initial investment/ initial investment
Accounts Receivable are at the Optimum Level When
Carrying cost = opportunity costs
Business Process Re-engineering
Systematic approach or methodology for analyzing business activities or processes with a view to improving the organizations alignment with strategic goals and/or it’s effectiveness, efficiency, competitiveness etc
3 Questions to Answer to See if Organization is Implementing BPR
(1) Is the effort focuses on critical business processes that, if they changed, can have a major impact on performance
(2) How ambitious is the desired improvement
(3) How receptive is senior management to change
Learning Curve
(1) Graphical description of the process that shows the impact of learning over a number of practice opportunities on work behavior
(2) Usually shows increase in work performance as an employee integrates learning experiences into work practices
(3) May also show learning plateaus
Learning Curve Analysis
Method involves applying a mathematical formula to estimate future time to product units
Cost Approach
Valuation method based upon what it would cost to replace the subject item with an asset of like function and capacity
Income Approach
Method of measuring the market value of all output by adding up the factor payments and claims on the value of all final output
Market Approach
Valuation approach that uses market comparisons of identical of comparable assets or liabilities
Key Objectives of Supply Chain Management
(1) To improve communications at all levels of the supply chain to create an uninterrupted flow of materials and products
(2) To reduce inventory levels while improving customer service levels
(3) To reduce the supplier base while developing supplier relationships
(4) To coordinate logistical activities to ensure that trade offs between the various activities are understood to allow for the lowest possible logistical cost
(5) To arrange credit terms and methodologies of exchanging funds across entities and within supply chains
Drum-Buffer-Rope System
Tool for managing product flow inspired by the theory of constraints
“Drum” in DBR System
The constraint in the system that sets pace for production; production can’t exceed slowest path in system
“Buffer” in DBR System
Protective inventory built into system to provide slack around the constraint
“Rope” in DBR System
A pull system to trigger product flow
Process Management
The planning and monitoring of the operations of an actual business process
Cost Allocation
Assigning one or more costs to one of more subunits of an organization according to some logical measure of use
Direct Allocation
Allocation of the costs of each service department directly to production departments
Step Allocation
The allocation of the costs of each service departments that receive the service whether other service departments of production departments
Transaction Processing System
System for performing routine functions
Worth
Advantages of ownership based on the perceived benefits at a particular point in time and for a particular use
Value
The determination of what would be received in an exchange between two willing parties in an arms-length transaction in the marketplace when both parties had acted with knowledge, with prudence, and without compulsion
Cost
What was paid for an asset
Flexible Budget
Budget prepared for several possible levels of production or adjusted for the level of production actually achieved
Four Perspectives of Balanced Scorecard Concept
(1) Customer
(2) Learning and growth
(3) Internal business process
(4) Financial
Commercial Paper
Written promise to pay a specified amount of money - medium of exchange which is readily transferrable but which doesn’t require immediate payment
Instruments Included in Commercial Paper
(1) Checks
(2) Drafts
(3) Certificates of deposits
(4) Notes
Static Budget
Prepared for a single target level of activity, doesn’t change although actual or possible levels of activity may vary
Expected Value
Mean or average value of a random variable over an infinite number of outcomes
Expected Value Calculated By
Weighing the value of each possible outcome by it’s probability and summing over all values
