In the systems selection phase of the SDLC, the same five feasibility factors are considered for the

specific system features that have been conceptualized and for each conceptual design alternative. The
economic feasibility study in the detailed analysis includes a cost-benefit analysis for each alternative.
6. Explain why the Systems Development Life Cycle is of interest to accountants. What is the
accountants role in the Systems Development Life Cycle?
ANS:
The information system requires a significant financial investment. Accountants are concerned that
the capital investment involved in acquiring an information system is properly handled. Also, the
information system gathers the data used to prepare financial statements. Accountants must be certain
that the information system is applying accounting principles properly and that the system itself has
adequate internal controls. Any deficiencies in the information system could result in misstated
financial statements.
Accountants have three roles in the Systems Development Life Cycle. Accountants are users of the
information system and as such must be able to communicate their needs to the systems designers.
These needs include audit trail requirements, depreciation models, and other accounting techniques.
Accountants are members of the SDLC development team and are expected to provide information
about the requirements of the system including security needs. Finally, accountants are auditors of the
information system and determine what audit features should be designed into the system.
7. What are three problems that account for most system failures?
ANS:
Most system failures can be traced to three problems:
a. poorly specified system requirements, due to communication problems between users and systems
professionals, the iterative nature of the process, and the need to rework parts of the system;
b. ineffective development techniques for presenting, documenting, and modifying systems
specifications; and
c. lack of user involvement during critical development stages.
8. What is Industry analysis and why do managers do it.
ANS:
Industry Analysis provides management with an analysis of the driving forces that affect their
industry and their organizations performance. Such analysis offers a fact-based perspective on the
industrys important trends, significant risks, and potential opportunities that may impact the
businesss performance.
9. Why is the announcement of a new systems project so critical to project success?
ANS:
Change is threatening to many individuals. A new system can be perceived as putting jobs at risk in
the name of efficiency, as a threat to organizational structure, and as requiring job skills that some
users fear they lack. The announcement of a new system must include upper management support and
an explanation of the business rationale for the system and the expected benefits for ultimate users.
10. Contrast the preliminary project feasibility study with the feasibility study performed in the systems
evaluation and selection phase of the SDLC.
ANS:

A preliminary feasibility study for the project as a whole is performed in the systems needs analysis
phase of the SDLC. Five aspects to project feasibility are considered: technical feasibility, economic
feasibility, legal feasibility, operational feasibility, and schedule feasibility. The preliminary analysis is
based largely on the judgment and intuition of the systems professionals.
In the systems evaluation and selection phase of the SDLC, the same five feasibility factors are
considered for the specific system features that have been conceptualized and for each conceptual
design alternative. The economic feasibility study includes a cost-benefit analysis for each alternative.
11. Part of systems planning is a project feasibility study. Several feasibility issues can be raised. What
are they? Explain the key concerns.
ANS:
The key feasibility issues include: technical, economic, legal, operational, and schedule. Technical
feasibility relates to whether the proposed system can be developed with existing technology or
requires new. Economic feasibility relates to cost questions. Legal fe