mis 4310 chapter 4

The _____ is the minimum acceptable rate of return on an investment. a. capitalization rate c. discount rate b. internal rate of return d. required rate of return

D. The required rate of return

The first step in determining the NPV is to _____. a. determine the estimated costs and benefits for the life of the project and the products it produces b. determine the discount rate c. calculate the net present value d. determine the cash flow

a. determine the estimated costs and benefits for the life of the project and the products it produces

The majority of time on a project is usually spent on _____, as is most of the project's budget. a. execution c. closing b. planning d. monitoring and controlling

a. execution

A _____ is a document used to coordinate all project planning documents and help guide a project's execution and control. a. project management plan c. scope statement b. statement of work d. business case

a. project management plan

The business case includes information on _____. a. the business need for the project c. the project objective, high-level requirements, and time and cost goals b. relevant government or industry standards d. policies, procedures, guidelines, and systems that influence a project's success

C Many projects require a business case to justify their investment. Information in the business case, such as the project objective, high-level requirements, and time and cost goals, is included in the project charter.

_____ should result in improvements in project performance. a. Corrective actions c. Preventive actions b. Defect repairs d. Product acceptance plans

a. Corrective actions

Which of the following is true of return on investment or ROI? a. It is always a percentage. c. It is the result of adding the project costs to the profits. b. It is always a positive number. d. The lower it is, the better.

a. It is always a percentage.

In the _____ stage of selecting information technology projects, organizations define project scope, benefits, and constraints. a. project planning b. business area analysis c. resource allocation d. information technology strategy planning

a. project planning

The first step in the planning process is _____. a. to tie the information technology strategic plan to the organization's overall strategic plan c. to start defining potential IT projects in terms of their scope, benefits, and constraints b. to perform a business area analysis d. to choose which projects to do and assigning resources to work on them

a. to tie the information technology strategic plan to the organization's overall strategic plan c. to start defining potential IT projects in terms of their scope, benefits, and constraints

A project's internal rate of return can be determined by finding what discount rate results in an NPV of _____ for the project. a. zero c. a hundred percent b. one d. fifty percent

a. zero

_____ analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time. a. Cost of capital c. Cash flow b. Net present value d. Payback

b. Net present value

Which of the following is a proactive process undertaken to reduce the probability of negative consequences associated with project risks? a. Performance reports c. Defect repairs b. Preventive actions d. Corrective actions

b. Preventive actions

The _____ stage of information technology planning outlines business processes that are central to achieving strategic goals and helps determine which ones could most benefit from information technology. a. project planning b. business area analysis c. resource allocation d. information technology strategy planning

b. business area analysis

Benefits minus costs is known as the _____. a. cost of capital c. discount factor b. cash flow d. opportunity cost of capital

b. cash flow

The _____ section of the project management plan describes how to monitor project progress and handle changes. a. management objectives c. risk management b. project controls d. technical processes

b. project controls

Payback occurs when: a. the net cumulative benefits minus costs equal one. c. the net costs are lower than the cumulative benefits. b. the net cumulative benefits equal the net cumulative costs. d. the cumulative benefits are double the cumulative costs.

b. the net cumulative benefits equal the net cumulative costs.

In a weighted scoring model, the sum of the weights of all the criteria must total _____ percent. a. 10 c. 100 b. 50 d. 150

c. 100

_____ involves identifying and controlling the functional and physical design characteristics of products and their support documentation, and ensures that the descriptions of the project's products are correct and complete. a. NPV analysis c. Configuration management b. Project management information systems d. Project time management

c. Configuration management

The project schedule information section of the project management plan includes ____. a. a detailed budget c. an elaborate timetable b. a list of key deliverables d. a directory of staff involved in the project

c. an elaborate timetable

The _____ section of the project plan should describe the major project functions and activities and identify those individuals who are in charge of them. a. organizational charts b. other organizational or process-related information c. project responsibilities d. management objectives

c. project responsibilities

In the _____ stage of selecting information technology projects, organizations select information technology projects. a. project planning b. business area analysis c. resource allocation d. information technology strategy planning

c. resource allocation

_____ are new requirements imposed by management, government, or some external influence. a. Opportunities c. Problems b. Charters d. Directives

d. Directives

An IT company revises its process parameters in response to complaints from vendors that products were not ready on time. This would be an example of _____. a. cost forecasting c. defect repairs b. a preventive action d. a corrective action

d. a corrective action

A(n) _____ is a formal, documented process that describes when and how official project documents may be modified, the people authorized to make modifications, and the paperwork required for these changes. a. WBS c. performance report b. project charter d. change control system

d. change control system

A _____ is a document that recognizes the existence of a project and provides direction on the project's objectives and management. a. stakeholder register c. directive b. risk register d. project charter

d. project charter

The _____ section of the project management plan describes specific methodologies a project might use and explains how to document information. a. management objectives c. risk management b. project controls d. technical processes

d. technical processes