chapter 5 ****
A major outcome and deliverable from the project initiation and planning phase that contains the best estimate of a project's scope, benefits, costs, risks, and resource requirements defines the:
Baseline Project Plan
The _________ is the major outcome and deliverable from the project initiation and planning phase and contains an estimate of the project's scope, benefits, costs, risks, and resource requirements.
Baseline Project Plan
________________ finds the amount of time required for the cumulative cash flow from a project to equal its initial and ongoing investment.
Break-even analysis
Referencing a walkthrough, the maintenance oracle ensures that the work product adheres to organizational technical standards.
False
Referencing the Management Issues section of the Baseline Project Plan, the communication plan provides a description of the team member roles and reporting relationships.
False
The Explanation of Services is a short document prepared for the customer that describes what the project will deliver and outlines all work required to complete the project.
False
The Statement of Work clearly outlines the objectives and constraints of the project for the development group.
False
The Systems Service Request reflects the best estimate of the project's scope, benefits, costs, risks, and resource requirements, given the current understanding of the project.
False
The objective of ROI analysis is to discover at what point cumulative benefits equal costs.
False
Using a discount rate of 12 percent, the present value of a $50,500 benefit received 2 years from now is $39,859.69.
False
Using a discount rate of 14 percent, the present value of a $10,000 benefit received 5 years from now is $5,500.49.
False
Variable costs are costs resulting from the ongoing evolution and use of a system.
False
How is project planning distinct from general information systems planning?
General information systems planning focuses on assessing the information systems needs of the entire organization.
_________________ is the process of assessing potential legal and contractual ramifications due to the construction of a system.
Legal and contractual feasibility
______________ uses a discount rate determined from the company's cost of capital to establish the present value of the project.
Net present value
__________ are costs associated with project start-up and development, or system start-up.
One-time costs
_________ is the process of assessing the degree to which a proposed system solves business problems or takes advantage of business opportunities.
Operational feasibility
_____________ is the process of evaluating how key stakeholders within the organization view the proposed system.
Political feasibility
____________ is the current value of a future cash flow.
Present value
____________ are costs resulting from the ongoing evolution and use of a system.
Recurring costs
___________ is the ratio of the net cash receipts of the project divided by the cash outlays of the project.
Return on investment
____________ is the process of assessing the degree to which the potential time frame and completion dates for all major activities within a project meet organizational deadlines and constraints for affecting change.
Schedule feasibility
A document prepared for the customer during project initiation and planning that describes what the project will deliver and outlines generally at a high level all work required to complete the project is the:
Statement of Work
The __________________ is a document prepared for the customer during project initiation and planning that describes what the project will deliver and outlines generally at a high level all work required to complete the project.
Statement of Work
__________ is the process of assessing the development organization's ability to construct a proposed system.
Technical feasibility
All information collected during project initiation and planning is collected and organized into a document called the Baseline Project Plan.
True
Anticipating and controlling user changes is a guideline for better cost estimating.
True
Assessing project feasibility is a required activity for all information systems projects.
True
Because many projects may be competing for the same investment dollars and may have different useful life expectancies, all costs and benefits must be viewed in relation to their present rather than future value when comparing investment options.
True
Competitive necessity, more timely information, and improved organizational planning are intangible benefits.
True
During project initiation and planning, potential tangible benefits may have to be considered intangible.
True
Economic feasibility is the process of identifying the financial benefits and costs associated with a development project.
True
Fixed costs are costs that are billed or incurred at a regular interval and usually at a fixed rate.
True
Generally speaking, legal and contractual feasibility is a greater consideration if your organization has historically used an outside organization for specific systems or services that you now are considering handling yourself.
True
Improvement of management planning and control is a tangible benefit.
True
Most techniques for analyzing economic feasibility employ the time value of money concept.
True
Opening new markets and increasing sales opportunities is a tangible benefit.
True
Project initiation focuses on activities that will help organize a team to conduct project planning.
True
Project planning focuses on defining clear, discrete tasks and the work needed to complete each task.
True
Proper and insightful project planning, including determining project scope as well as identifying project activities, can easily reduce time in later project phases.
True
Referencing a walkthrough, the user makes sure that the work product meets the needs of the project's customers.
True
Site preparation is an example of a one-time cost.
True
The Statement of Work can be used as the basis of a formal contractual agreement outlining firm deadlines, costs, and specifications.
True
The Statement of Work is a document prepared for the customer during project initiation and planning that describes what the project will deliver and outlines generally at a high level all work required to complete the project.
True
The construction of an information system can have political ramifications.
True
The culmination of the feasibility analyses form the business case that justifies the expenditure of resources on the project.
True
The goal of operational feasibility is to understand the degree to which a proposed system will likely solve the business problems or take advantage of opportunities.
True
The major outcomes and deliverables from project initiation and planning are the Baseline Project Plan and the Statement of Work.
True
The objective of project initiation and planning is to transform a vague system request document into a tangible project description.
True
The objective of the project planning process is the development of a Baseline Project Plan and a Statement of Work.
True
The project initiation and planning process for an Internet-based electronic commerce application is similar to the process followed for other applications.
True
The time value of money compares present cash outlays to future expected returns.
True
Using a discount rate of 10 percent, the present value of a $2,500 benefit received 5 years from now is $1,552.30.
True
Web-based system costs include platform costs, content and service, and marketing.
True
The Baseline Project Plan:
all of the above
The Statement of Work:
all of the above
When conducting a technical risk assessment, which of the following is true?
all of the above
As a rule of thumb estimate, what percentage of the entire development effort should be devoted to the project initiation and planning process?
between 10 and 20 percent
The analysis technique that finds the amount of time required for the cumulative cash flow from a project to equal its initial and ongoing investment is referred to as:
break-even analysis (BEA)
A __________ is a written report that outlines the justification for an information system; this report highlights economic benefits and costs and the technical and organizational feasibility of the proposed system.
business case
At a walkthrough meeting, the person who plans the meetings and facilitates a smooth meeting process is referred to as the:
coordinator
Referencing a walkthrough meeting, the ___________ plans the meeting and facilitates a smooth meeting process.
coordinator
Which of the following would be classified as a tangible cost?
cost of hardware
The ____________ is the rate of return used to compute the present value of future cash flows.
discount rate
The rate of return used to compute the present value of future cash flows refers to:
discount rate
Which of the following is not an element of project initiation?
dividing the project into manageable tasks
To identify the financial benefits and costs associated with the development project is the purpose of:
economic feasibility
Which of the following would be classified as an intangible cost?
employee morale
Which of the following is an element of project planning?
establishing a relationship with the customer
An ______________ is a benefit derived from the creation of an information system that cannot be easily measured in dollars or with certainty.
intangible benefit
The reduction of waste creation is an example of a(n):
intangible benefit
A cost associated with an information system that cannot be easily measured in terms of dollars or with certainty refers to:
intangible cost
An ___________ is a cost associated with an information system that cannot be easily measured in terms of dollars or with certainty.
intangible cost
The process of assessing potential legal and contractual ramifications due to the construction of a system refers to:
legal and contractual feasibility
Tangible benefits would include:
lower transaction costs
At a walkthrough meeting, the person who reviews the work product in terms of future maintenance activities is referred to as the:
maintenance oracle
Referencing a walkthrough meeting, the ______________ reviews the work product in terms of future maintenance activities.
maintenance oracle,
The analysis technique that uses a discount rate determined from the company's cost of capital to establish the present value of a project is commonly called:
net present value (NPV)
A cost associated with project startup and development or system startup refers to a(n):
one-time cost
Rental of space and equipment, system maintenance costs, and asset depreciation are examples of:
operating costs
The process of assessing the degree to which a proposed system solves business problems or takes advantage of business opportunities refers to:
operational feasibility
Which of the following is an example of a web-based marketing cost?
paid links to other Web sites
To gain an understanding of how key stakeholders within the organization view the proposed system is the purpose of:
political feasibility
The current value of a future cash flow is referred to as its:
present value
Capital costs, management and staff time, and consulting costs are examples of:
procurement costs
Activities designed to assist in organizing a team to conduct project planning is the focus of:
project initiation
The number of members on the project team, project duration, and the number of organizational departments involved in the project are examples of which of the following risk factors?
project size
A new system or the renovation of existing systems, user perceptions, and management commitment to the system are examples of which of the following risk factors?
project structure
A cost resulting from the ongoing evolution and use of a system refers to a(n):
recurring cost
Application software maintenance, new software and hardware leases, and incremental communications are examples of:
recurring costs
The ratio of the net cash receipts of the project divided by the cash outlays of the project, enabling tradeoff analysis to be made between competing projects is often referred to as:
return on investment (ROI)
To gain an understanding of the likelihood that all potential time frame and completion date schedules can be met and that meeting these dates will be sufficient for dealing with the needs of the organization is the purpose of:
schedule feasibility
Which of the following is an example of a web-based platform cost?
server software
At a walkthrough meeting, the person who ensures that the work product adheres to organizational technical standards is referred to as the:
standards bearer
Referencing a walkthrough meeting, the _________________ ensures that the work product adheres to organizational technical standards.
standards bearer
A _____________ is a benefit derived from the creation of an information system that can be measured in dollars and with certainty.
tangible benefit
A benefit derived from the creation of an information system that can be measured in dollars and with certainty is a(n):
tangible benefit
A savings of $3,000 resulting from a data entry error correction would most likely be classified as a(n):
tangible benefit
Cost reduction and avoidance, error reduction, and increased flexibility are examples of:
tangible benefits
A _______ is a cost associated with an information system that can be easily measured in dollars and with certainty.
tangible cost
A cost associated with an information system that can be measured in dollars and with certainty is referred to as a(n):
tangible cost
An assessment of the development group's understanding of the possible target hardware, software, and operating environments, system size, complexity, and the group's experience with similar systems should be included as part of:
technical feasibility
To gain an understanding of the organization's ability to construct the proposed system is the purpose of:
technical feasibility
The objective of the project planning process is:
the development of a Baseline Project Plan and Statement of Work
During project initiation and planning, the most crucial element of the design strategy is:
the system's scope
The _________ refers to the process of comparing present cash outlays to future expected returns.
time value of money
The concept of comparing present cash outlays to future expected returns best defines:
time value of money
At a walkthrough meeting, the person (or group) who ensures that the work product meets the needs of the project's customers is referred to as the:
user
A __________ is a peer group review of any product created during the systems development process.
walkthrough
A peer group review of any product created during the system development process refers to:
walkthrough
Which of the following is an example of a web-based content and service cost?
web project manager
Intangible benefits are benefits associated with project start-up, development, or system start-up.
False
Management, operation, and planning personnel are examples of start-up costs.
False
Referencing a walkthrough, the coordinator reviews the work product in terms of future maintenance activities.
False
A firewall server is an example of a content and service web-based system cost.
False
Disruption to the rest of the organization is an example of a procurement cost.
False
During project initiation and planning, you should be able to precisely define all benefits and costs related to a particular project.
False
Fulfillment feasibility is the process of examining the likelihood that the project will attain its desired objectives.
False
If the NPV of all benefits is $150,000 and the NPV of all costs is $125,000, then the ROI is 15 percent.
False
If the NPV of all benefits is $2,500,000 and the NPV of all costs are $1,000,000 then the ROI is 10 percent.
False
If the NPV of all costs is $100,000 and the NPV of all benefits is $170,000, then the ROI would be 35 percent.
False
Increased flexibility is an intangible benefit.
False
The justification for an information system, presented in terms of the tangible and intangible economic benefits and costs, and the technical and organizational feasibility of the proposed system best defines:
Business Case
______________ is the process of identifying the financial benefits and costs associated with a development project.
Economic Feasibility
A walkthrough is a peer group review of any product created during the systems development process.
True
