question archive This year you obtain a new client, Lee Corporation, a regional distributor of appliances
This year you obtain a new client, Lee Corporation, a regional distributor of appliances
Subject:AccountingPrice:2.87 Bought7
This year you obtain a new client, Lee Corporation, a regional distributor of appliances. Before becoming your client, Lee had installed a microcomputer-based accounting system to handle its receivable, payables general ledger and payroll. Lee purchases its microcomputer with off-the-shelf software and appears very pleased with it. You notice that the computer sits on the bookkeeper's desk. You ask Christian Lee, the president, about his feelings about the computer system, and he states: "The system is absolutely great. It has already saved us a lot of time and money. I get reports when I want them, not days later. In fact, it is so good, why don't you try it? The password is LEE. You can go ahead and use it. If you want any backup files, they are stored in the supply room. We sure saved a lot of money by purchasing the system from a mail-order operation. A system analyst wanted P15,000 to help pick the best system for us, and a local dealer wanted P11,000 more for comparable hardware and software." Required:
What are your concerns about the system that Lee uses?
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Answer:
Here are some concerns about the system that Lee uses:
- training
- development
- security
- customization
Training - since this is an off-the-shelf system, there is probably insufficient training provided to the owner and employees. Due to this, there may be higher cost related due to human error. In addition, there may be features of the software that may not be utilized by Lee Corporation due to lack of knowledge of the software.
Development - since this is an off-the-shelf system, we may assume that there is limited update done to the software related. This may be costly in the future to ask for specific updates to keep up with technological, industry and accounting updates.
Security - Off-the-shelf system tends to have generic security measures. This would make the information stored more susceptible to being taken. There is also consideration on backup storage which is located near the system unit.
Customization - Being an off-the-shelf system, it is a one-size-fits-all system. This means that it may address the general needs of Lee but it may not address it in an efficient manner. It also does not have opportunities for growth as Lee Corporation grows bigger.
