INFORMATION SYSTEMS STRATEGY [MS2] EXAMINATION
March 2012
Marks
20
Time: 4 Hours
Question 1
Select the best answer for each of the following unrelated items. Answer each of these items in your examination booklet by giving the number of your choice. For example, if the best answer for item (a) is (1), write (a)(1) in your examination booklet. If more than one answer is given for an item, that item will not be marked. Incorrect answers will be marked as zero. Marks will not be awarded for explanations.
Note:
2 marks each
a.
Which of the following is a correct statement about managing information technology (IT) and information systems (IS)?
1) The easiest way to make IT spending strategic and accountable is to allocate a fixed percentage of annual total sales to the IT budget.
2) The introduction of the Sarbanes-Oxley Act affects only accounting practices, but not IS practices. 3) IT has a much broader scope than IS because IS cannot be built without the support of IT.
4) The Gartner worldwide IT spending report 2007-2010 indicated that organizations spent a higher percentage of total amounts on software compared to their spending in hardware.
b. Which of the following statements about the adoption of new technology is correct?
1) New software adoption refers only to off-the-shelf software packages.
2) New software adoption should be considered separately from the hardware infrastructure so that software features are evaluated without bias.
3) Accountants should help an organization to evaluate whether an IT investment is too risky even if the technology is very advanced with attractive features.
4) It is an accountant’s responsibility to encourage an organization to mix and match network and hardware purchases in order to save money.
c.
Which of the following statements about systems development methods and techniques is correct?
1) A set of techniques to be used in each phase of the systems development process