Information Technology and You 153RAM
Random access memory (RAM)is the space that the computer uses to execute
programs. The amount of RAM required is dictated by the number of applica-
tions that the computer is asked to run simultaneously as well as by the systems
software in use (e.g., Windows 98, Windows XP). For most average users, 128
megabytes of RAM is an appropriate amount (a megabyte is 1,048,576 bytes of
data). You can never have too much RAM, though, so the more, the better.
While RAM prices f luctuate widely with supply and demand, you should plan
on spending about a dollar per megabyte.
Hard Disk
All programs and data are stored on the hard disk. Disk technology has ad-
vanced greatly in the past five years. Recording density has enabled disk ca-
pacity to approach numbers previously unheard of except in large mainframe
commercial systems. In 1992 the typical disk stored 80 megabytes. Today typ-
ical disk capacity on desktop machines ranges from 10 to 20 gigabytes. Al-
though it seems unimaginable to fill up an entire 10-gigabyte disk, it happens
faster than one might think. Typical office applications require 100 megabytes
of storage for the application alone, not including any associated data. Multi-
media applications (sound and video) are very data intensive and quickly con-
sume disk space. For example, CD-quality music recordings consume roughly
10 megabytes per minute! Again, the more storage the better.
Reminder: Hard disk failures do occur. Always back up your data onto a
removable disk or tape!
CD ROM/DVD ROM
Today an increasing amount of data and number of applications are being sup-
plied on digital, compact disk (CD) technology. Using this technology, large
amounts of data can be stored inexpensively. CD ROMs, which have the stor-
age capacity for approximately 700 megabytes of data, are usually sold as “read
only.” Recently, however, inexpensive recordable CD drives have become pop-
ular, allowing people to store massive databases or record music on their own.
Other than the speed at which they access and transfer data, all CD ROMs are
very similar. Speed is expressed as a multiple of the speed of the original CD
ROMs, which were produced in the early 1990s. Today, typical CD ROMs
transfer data 32 or 48 times faster than the original CD ROMs and are referred
to as 32X or 48X CD ROMs. Again, the faster, the better.
There are numerous information databases available on CD that would
interest the accountant or finance executive. For example, most census data is
available on CD. Also, historical data on stock and bond prices, copies of most
trade articles, IRS regulations, state tax regulations, tax forms, recent court