Accounting Information Systems Assessment: Excel Spreadsheet
Learning Outcomes
1. Apply technical knowledge and skills in creating information for the workplace using spreadsheets and relational databases.
2. Communicate with IT professionals, stakeholders and user groups of information systems.
Global Athletic Apparel Manufacturer (GAAM)
INFORMATION TECHNOLOGY PROPOSAL
Global Athletic Apparel Manufacturer's (GAAM) external consultant suggested that the company should have an inventory and sales database management system to help the company monitor its sales and products. GAAM's Chief Information Officer, Mr. John Norton, is yet to decide whether to have the system developed in-house or outsource the development. A cost-benefit analysis is needed to assist him in making this decision.
A cost-benefit analysis used to evaluate the total anticipated cost of a project compared to the total expected benefits in order to determine whether the proposed implementation is worthwhile for the company or project team.
GAAM needs a recommendation whether to develop the system in-house or outsourced based on the results of the cost-benefit analysis for 5 years.
Cost-Benefit Analysis Overview:
Conducting a Cost-Benefit Analysis
While it is important to provide decision-makers with a range of options, the process of developing and analysing these can be expensive and time consuming. For major investments, it may be necessary to outline various potential options and then to have decision-makers select, after a preliminary screening, a smaller number for detailed appraisal. In any case, an appropriate level of consultation should be undertaken as best practice, either formally or informally, in creating a set of alternatives.
Step 1: Identify, quantify and value the costs and benefits of each alternative
Step 2: Calculate the Net Present Value
Step 3: Sensitivity analysis and dealing with uncertainty
ASSESSMENT - EXCEL SPREADSHEET
General Instructions:
1. Create a cost-benefit analysis spreadsheet for both in-house and outsourced development:
- Create s spreadsheet, format and use formulas to identify the cost-benefit analysis for alternatives.
- Visually show comparison by using graphs and charts.
- Give recommendations on which alternative is more beneficial to the organisation.
Note: students are required to input their own data.
Attachment:- Assignment File.rar