IST 3343 Exam 1 Test Bank Chapters 1-4

A Network diagram depicts project tasks and their interrelationships.

True

A system's environment is everything outside a system's boundary that influences the system

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

Critical path scheduling is a scheduling technique whose order and duration of a sequence of task activities directly affect the completion date of a project.

True

Decomposition allows the systems analyst to build different parts of the system at independent times and have the help of different analysts

True

Economic feasibility is a process of identifying the financial benefits and costs associated with a development project.

True

Enterprise-wide systems are large, complex systems that consist of a series of independent system modules

True

The overall goal or function of a system best defines: a. purpose. b. goal. c. objective. d. scope. e. mission.

a

The ratio of the net cash receipts of the project divided by the cash outlays of the project, enabling trade-off analysis to be made between competing projects, is often referred to as: a. return on investment (ROI). b. break-even analysis (BEA). c. net present value (NPV). d. future value (FV). e. Currency Rate Analysis (CRA).

a

The reduction of waste creation is an example of a(n): a. intangible benefit. b. qualitative benefit. c. tangible benefit. d. operational benefit. e. profitable benefit.

a

Optimistic time refers to: a. the maximum period of time for an activity to be completed. b. the minimum period of time for an activity to be completed. c. the planner's "best guess" of the amount of time the activity actually will require for completion. d. the maximum period of time for an entire project to be completed. e. the average period of time for an activity to be completed.

b

The line that marks the inside and outside of the system that sets off the system from its environment, best defines: a. delineation mark. b. boundary. c. scope. d. interface. e. analysis area.

b

Which of the following would be classified as a tangible cost? a. Loss of customer goodwill b. Cost of hardware c. Employee morale d. Operational inefficiency e. Not all customers use the Internet.

b

A ___________ is an irreducible part or aggregation of parts that makes up a system

component

A ________ is a limit to what a system can accomplish.

constraint

Tangible benefits would include: a. improved organizational planning. b. ability to investigate more alternatives. c. improved asset control. d. lower transaction costs. e. first to market.

d

To identify the financial benefits and costs associated with the development project is the purpose of: a. financial feasibility. b. technical feasibility. c. operational feasibility. d. economic feasibility. e. schedule feasibility.

d

Which of the following is a direct result of decomposition? a. Coupling b. Open systems c. Cohesion d. Modularity e. Interfaces

d

In which SDLC phase is the information system coded, tested, and installed in the organization? a. Systems planning and selection b. Systems replacement c. Systems analysis d. Systems design e. Systems implementation and operation

e

Potential development projects can be identified by: a. a steering committee. b. top management. c. a senior IS manager. d. user departments. e. all of the above.

e

Which of the following is not a project management phase? a. Closing down the project b. Planning the project c. Executing the project d. Initiating a project e. Implementing the project

e

An ____________________ is a cost associated with an information system that cannot be easily measured in terms of dollars or with certainty.

intangible cost

An ____________ is the point of contact where a system meets its environment or where subsystems meet each other.

interface

The overall goal or function of a system is called its ___________

purpose

The ____________________ is the series of steps used to mark the phases of development for an information system.

systems development life cycle (SDLC)

____________________ is a benefit derived from the creation of an information system that can be measured in dollars and with certainty.

tangible benefit

A __________________ is a cost associated with an information system that can be easily measured in dollars and with certainty.

tangible cost

A system that integrates individual traditional business functions into a series of modules so that a single transaction occurs seamlessly within a single information system rather than several separate systems best describes: A) enterprise resource planning (ERP). B) application service. C) storage area network. D) packaged software. E) system integration software.

A

The primary concern about cloud computing is: A) cost. B) reliability. C) compliance with standards. D) dependability. E) sustainability.

B

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

When developing information systems, an organization could use: A) an information technology services firm. B) open-source software. C) enterprise-wide solution software. D) in-house development. E) all of the above

E

_________________________ is the process of identifying the financial benefits and costs associated with a development project.

Economic feasibility

A boundary is the point of contact where a system meets its environment or where subsystems meet each other

False

A major disadvantage of the Network diagram is its inability to represent completion times and show interrelationships between activities.

False

An activity on the critical path will have a slack time of 1.

False

Systems analysis is the first phase of the systems development life cycle

False

The Project Charter reflects the best estimate of the project's scope, benefits, costs, risks, and resource requirements, given the current understanding of the project.

False

________________ is the process of developing and maintaining an information system.

Information systems analysis and design

_________________________ is a structured process in which users, managers, and analysts work together for several days in a series of intensive meetings to specify or review system requirements.

Joint Application Design

_______________ is the process of dividing a system into chunks or modules of equal size.

Modularity

________________________ are costs associated with project start-up and development, or system start-up.

One-time costs

______________________ is the current value of a future cash flow.

Present value

________________ is the amount of time that an activity can be delayed without delaying the project.

Slack time

All of the following are reasons to go with cloud computing EXCEPT: A) freeing internal IT staff. B) gaining access to applications faster. C) reduced development time. D) achieving lower cost access to corporate-quality applications. E) A and B.

C

Coupling is a direct result of decomposition

False

Coupling results in smaller and less complex systems that are easier to understand than larger, complicated systems

False

One of the primary benefits of using an enterprise software solution is the short time period required for implementation.

False

Variable costs are costs resulting from the ongoing evolution and use of a system.

False

___________________ is a controlled process of initiating, planning, executing, and closing down a project.

Project management

_______________ refers to building a scaled-down version of the desired information system.

Prototyping

_____________________ is the phase of the SDLC in which the system chosen for development in systems analysis is first described independently of any computer platform and is then transformed into technology-specific details from which all programming and system construction can be accomplished.

Systems design

Interfaces exist between subsystems

True

Joint Application Design (JAD) is a structured process in which users, managers, and analysts work together for several days in a series of intensive meetings to specify or review system requirements

True

Opening new markets and increasing sales opportunities is a tangible benefit.

True

Outsourcing refers to turning over responsibility of some or all of an organization's information systems applications and operations to an outside firm.

True

The main goal of systems analysis and design is to improve organizational systems, typically through applying software that can help employees accomplish key business tasks more easily and efficiently

True

The project manager is responsible for initiating, planning, executing, and closing down the project.

True

The time value of money (TVM) compares present cash outlays to future expected returns.

True

Using enterprise software solutions, a firm can integrate all parts of a business process in a unified information system.

True

________________________ is a type of cost-benefit analysis to identify at what point (if ever) benefits equal costs.

Break-even analysis

An interface separates a system from other systems

False

A system's capacity can be viewed as a system constraint

True

An enterprise resource planning system is one of the three information systems classes

False

Cloud computing is best when a supported task is generic and one does not need instant access.

False

Cohesion is the extent to which subsystems depend on each other

False

Cohesion is the process of breaking down a system into its smaller components

False

Increased flexibility is an example of an intangible benefit.

False

The current value of a future cash flow is referred to as: a. future value. b. present value. c. investment value. d. discount rate. e. cash flow rate.

b

The objective of return on investment (ROI) analysis is to discover at what point cumulative benefits equal costs.

False

The systems development life cycle is a sequentially ordered set of phases

False

________________________ are costs resulting from the ongoing evolution and use of a system.

Recurring costs

____________________ is the phase of the SDLC in which the current system is studied and alternative replacement systems are proposed.

Systems analysis

_________________________ is the first phase of the SDLC, in which an organization's total information system needs are analyzed and arranged, and in which a potential information systems project is identified and an argument for continuing or not continuing with the project is presented.

Systems planning and selection

Information technology services firms, packaged software providers, vendors of enterprise-wide solution software, open-source software, and in-house development are sources of software

True

Information technology services firms, packaged software providers, vendors of enterprise-wide solution software, open-source software, and in-house development are sources of software.

True

Involving the user in analysis and design is a key advantage to the prototyping technique

True

Modularity divides a system into chunks or modules of a relatively uniform size

True

Most techniques for analyzing economic feasibility employ the time value of money concept.

True

Site preparation is an example of a one-time cost.

True

Slack time is equal to: a. the difference between an activity's latest and earliest expected completion time. b. the latest expected completion time. c. the difference between the start time and realistic time for each activity. d. the sum of an activity's latest and earliest expected completion time. e. the difference between the optimistic time and pessimistic time for an activity.

a

The first phase of the systems development life cycle is: a. systems planning and selection. b. systems study. c. systems analysis. d. systems design. e. systems implementation and operation.

a

The interest rate used to compute the present value of future cash flows refers to: a. discount rate. b. investment rate. c. transfer rate. d. future cash flow rate. e. valuation rate.

a

The need for a new or enhanced system is identified during: a. systems planning and selection. b. systems coding. c. systems analysis. d. systems design. e. systems implementation and operation.

a

A cost associated with an information system that can be measured in dollars and with certainty best describes: a. economic cost. b. tangible cost. c. intangible cost. d. one-time cost. e. measurable cost.

b

A cost associated with project start-up and development or system start-up refers to a(n): a. recurring cost. b. one-time cost. c. incremental cost. d. infrequent cost. e. consumable cost.

b

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: a. Information Systems Plan. b. Project Scope Statement. c. Mission Statement. d. Baseline Project Plan. e. Systems Service Request.

b

An information system includes each of the following except: a. application software. b. culture. c. documentation and training materials. d. specific job roles associated with the overall system. e. controls.

b

The amount of time that an activity can be delayed without delaying the project refers to: a. noncritical time. b. slack time. c. down time. d. delay time. e. stop time.

b

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: a. return on investment (ROI). b. break-even analysis (BEA). c. net present value (NPV). d. future value (FV). e. Currency Rate Analysis (CRA).

b

The extent to which subsystems depend on each other refers to: a. modularity. b. coupling. c. decomposition. d. dependence. e. cohesion.

b

The point of contact where a system meets its environment or where subsystems meet each other best describes: a. boundary points. b. interfaces. c. contact points. d. merge points. e. forks.

b

The line that marks the inside and outside of a system and that sets off one system from other systems in the organization is called a ________

boundary

A benefit derived from the creation of an information system that can be measured in dollars and with certainty is a(n): a. intangible benefit. b. qualitative benefit. c. tangible benefit. d. operational benefit. e. profitable benefit.

c

A cost associated with an information system that cannot be easily measured in terms of dollars or with certainty refers to a(an): a. economic cost. b. tangible cost. c. intangible cost. d. one-time cost. e. non-consumable cost.

c

A savings of $5,000 resulting from data entry error reductions would most likely be classified as a(n): a. intangible benefit. b. qualitative benefit. c. tangible benefit. d. operational benefit. e. profitable benefit.

c

Cost reduction and avoidance, error reduction, and increased flexibility are examples of: a. intangible benefits. b. qualitative benefits. c. tangible benefits. d. legal and contractual benefits. e. profitable benefits.

c

Realistic time refers to: a. the maximum period of time for an activity to be completed. b. the minimum period of time for an activity to be completed. c. the planner's "best guess" of the amount of time the activity actually will require for completion. d. the maximum period of time for an entire project to be completed. e. the average period of time for an activity to be completed.

c

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: a. return on investment (ROI). b. break-even analysis (BEA). c. net present value (NPV). d. future value (FV). e. Currency Rate Analysis (CRA).

c

The environment of a state university would not include: a. prospective students. b. the legislature. c. the president's office. d. the news media. e. a foundation.

c

The process of breaking the description of a system down into its smaller components best defines: a. coupling. b. cohesion. c. decomposition. d. modularity. e. scaling.

c

The process of developing and maintaining an information system best describes: a. joint application design. b. prototyping. c. information systems analysis and design. d. information technology infrastructure development. e. systems implementation

c

Which of the following would be classified as an intangible cost? a. Hardware costs b. Labor costs c. Employee morale d. Operational costs e. Internet service setup fee

c

Which of the following is not a system characteristic? a. Interface b. Boundary c. Input d. Scope e. Output

d

The _____________________ is the interest rate used to compute the present value of future cash flows.

discount rate

A group of interrelated procedures used for a business function, with an identifiable boundary, working together for some purpose, best defines: a. environment. b. system component. c. constraint. d. interface. e. system.

e

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 _________________________ refers to the process of comparing present cash outlays to future expected returns.

time value of money

______________ refers to everything external to a system that interacts with the system.

Environment

________________________ refers to a dependence of one part of the system on one or more other system parts.

Interrelated components

________________ is the practice of turning over responsibility of some or all of an organization's information systems applications and operations to an outside firm.

Outsourcing

A cost resulting from the ongoing evolution and use of a system best defines a(an): a. recurring cost. b. one-time cost. c. incremental cost. d. frequent cost. e. variable cost.

a

A major outcome and deliverable from project initiation and planning that reflects the best estimate of the project's scope, benefits, costs, risks, and resource requirements defines the: a. Baseline Project Plan. b. Information Systems Plan. c. Mission Statement. d. Resource Requirements Statement. e. Systems Service Request.

a

Application software maintenance, new software and hardware leases, and incremental communications are examples of: a. recurring costs. b. one-time costs. c. incremental costs. d. frequent costs. e. consumable costs.

a

Building a scaled-down version of the desired system best describes: a. prototyping. b. Agile Methodologies. c. joint application design. d. re-engineering analysis. e. rapid application development.

a

Dependence of one part of the system on one or more other system parts best describes: a. interrelated components. b. boundary. c. component. d. dependency. e. cohesion.

a

Pessimistic time refers to: a. the maximum period of time for an activity to be completed. b. the minimum period of time for an activity to be completed. c. the planner's "best guess" of the amount of time the activity actually will require for completion. d. the maximum period of time for an entire project to be completed. e. the average period of time for an activity to be completed.

a

A critical path refers to: a. a sequence of task activities whose order and durations indirectly affect the completion date of a project. b. a sequence of task activities whose order and durations directly affect the completion date of a project. c. a sequence of task activities whose order must be performed in parallel. d. a sequence of task activities whose duration cannot last more than 40 percent of the time allotted to the project. e. none of the above.

b

____________________ refers to the provision of applications over the Internet, where customers do not have to invest in the hardware and software resources need to run and maintain the applications.

Cloud Computing

_____________ is the extent to which a system or subsystem performs a single function.

Cohesion

_____________ is the extent to which subsystems depend on each other.

Coupling

___________________ refers to the shortest time in which a project can be completed.

Critical path

________________ is the process of breaking the description of a system down into small components.

Decomposition

A _______ is a group of interrelated procedures used for a business function, with an identifiable boundary, working together for some purpose.

system