MORE 2 KNOW

Question 1

WHAT is the database component of a decision support system (DSS)?

Answer 1

THIS is the raw data that are relevant to the decision

Question 2

WHAT is the model component of a decision support system (DSS)?

Answer 2

THIS is a set of equations, comparisons, graphs, conditions, assumptions, and other methods into which decision makers feed the data

Question 3

WHAT is the dialog component of a decision support system (DSS)?

Answer 3

THIS is the user interface that allows the user to specify an appropriate model or a particular set of related data

Question 4

WHAT is a key factor involving decision support system (DSS)?

Answer 4

Decision support system (DSS) present management with alternative choices but it DOES NOT automate a decision

Question 5

WHAT is are some advantage(s) of REA processing system?

Answer 5

(1) debits and credits are not considered
(2) the general ledger is not maintained

WHY? - Because all balances are calculated through queries, and ad hoc reports are easily produced

NOTE: REA systems use single-entry unlike TPS systems that use double-entry

Question 6

WHAT is an advantage of business intelligence (BI)?

Answer 6

Business intelligence (BI) gives upper management the information it needs to know where the organization is and how to steer it in the intended direction

Question 7

WHAT is a limitation of the profitability index?

Answer 7

IT requires detailed long-term forecasts of the project’s cash flows

i.e. long-term forecasts of the project’s cash flows may be difficult and costly

Question 8

WHAT capital budgeting model is the profitability index a variation of?

Answer 8

THE Net Present Value (NPV) Capital Budgeting Model

i.e. IT is the ratio of the present value of the future net cash inflows to the present value of the initial net investment

Question 9

WHAT is an factor that normally affects a project’s Net Present Value?

Answer 9

Proceeds from the sale of the asset to be replaced

i.e. To compute the projects Net Present Value, the initial investment is subtracted from the present value of the after-tax cash flows

Question 10

WHAT is a Schema?

Answer 10

THE description of the structure or organization of the database using data description language

i.e. IT is a logical view of an entire database

Question 11

WHAT is systems maintenance?

Answer 11

THE process of monitoring, evaluating, and modifying a system as needed

i.e. systems maintenance must be undertaken by systems analysts and applications programmers continuously throughout the life of a system

Question 12

WHAT is a programming language that supports object-oriented programming?

Answer 12

C++

NOTE: Because code segments can be reused in other programs, the time and cost of writing software is reduced

Question 13

WHAT is a Utility program?

Answer 13

Computer programs that perform routine processing functions, such as sorting and merging

i.e. these programs are provided by manufacturers of equipment to perform routine processing tasks required by both clients and auditors

Question 14

WHAT is the primary purpose of a disaster recovery plan?

Answer 14

TO specify the steps required to resume operations

i.e. A disaster recovery plan that is established and tested must be developed in connection with the business continuity plan

Question 15

WHAT is a risk of using potentially incorrect end-user developed files?

Answer 15

Management may place the same degree of reliance on files as they do on files generated from mainframe systems

Question 16

WHAT is a risk assessment in regards to Information Technology (IT)?

Answer 16

IT forms the core of an organization’s contingency planning

i.e. IT represents the procedure managers use to identify:
preventive measures to stop the occurrence of breaches and corrective measures to compensate in the event of breaches

Question 17

WHAT type of database model is the Hierarchical database?

Answer 17

A model that uses a tree structure with each record type having any number of lower-level dependent records

i.e. IT may have an unlimited number of subsequent records

Question 18

WHAT is a key factor in an e-commerce environment that requires that the information technology (IT) system be available on a continuous basis?

Answer 18

THE maintenance of redundant systems for instant availability to assure the flow of transactions

WHY? - Because it ensures normal operations can be carried on even if the main system is out of service

Question 19

WHAT is combinatorial test design?

Answer 19

IT identifies the number of tests needed to get the coverage developers want

Question 20

WHEN would a firm’s safety stock tend to increase?

Answer 20

WHEN the variability of the lead time increases

WHY? - Because as the variability in lead time increases, a firm tends to carry larger safety stocks