More 3343

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

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

Break-even analysis

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

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

False

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

False

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

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

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

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

True

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

True

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

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 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

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 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. nonconsumable 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

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

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

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

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

discount rate

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

An ____________ is a benefit derived from the creation of an information system that cannot be easily measured in dollars or with certainty.

intangible benefit

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

intangible cost

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

Economic feasibility

Increased flexibility is an example of an intangible benefit.

False

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

The ___________ refers to the process of comparing present cash outlays to future expected returns

time value of money

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

One-time costs

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

Recurring costs

_______________ is the current value of a future cash flow.

Present value

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

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

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

A ___________ 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