CS682 Chapter 11 without *7

50. Examples of intangible benefits include: improved customer goodwill; improved employee morale; better service to community; and better decision making.

True

53. The concept of the time value of money states that a dollar today is worth more than a dollar one year from now.

True

54. Operating costs tend to recur throughout the lifetime of the system.

True

55. Payback analysis is a simple and popular technique for determining if and when an investment will pay for itself.

True

56. Payback analysis determines how much time will lapse before accrued benefits overtake accrued and continuing costs. This period of time is known as the payback period.

True

59. The discount rate is a percentage similar to interest rates and is used to determine the present value of a dollar based on an expected percentage of earnings potential.

True

6. At a feasibility checkpoint, a project may be canceled or revised at any checkpoint, despite whatever resources have been spent.

True

60. The discount rate for a business is the opportunity cost of being able to invest money in other projects, including the possibility of investing in the stock market or other financial instruments.

True

61. The present value of a dollar at any time in the future can be calculated by using a formula.

True

63. Most spreadsheets include built-in functions for calculating present value.

True

64. The return on investment analysis (ROI) technique compares the lifetime profitability of alternative solutions or projects.

True

65. The formula for return on investment is: Lifetime ROI = (Estimated lifetime benefits - Estimated lifetime costs) / Estimated lifetime costs

True

69. The candidate systems matrix documents similarities and differences between candidate systems, however it offers no analysis.

True

8. Cultural (or political) feasibility is a measure of how well the solution will be accepted in the organizational climate.

True

80. The systems proposal is a deliverable that is usually a formal written report or oral presentation intended for system owners and users.

True

136. ____________________________ costs occur in proportion to some usage factor, for example: computer usage, supplies, overhead costs.

Variable

90. Which of the following questions do NOT address political or cultural feasibility?

Will the solution to the problem work?

105. Which of the following is NOT a guideline for written reports?

Write in the passive voice

150. A(n) ___________________ or executive summary is a one- or two-page summary of the entire report that helps readers decide if the report contains information they need to know.

abstract

89. Which format of written report places the conclusions near the front of the report?

administrative

134. When giving a formal presentation, if you don't know the answer to a question you should _____________________.

admit it

103. At which of the following points during systems analysis would you NOT have a feasibility checkpoint?

after the logical design phase

88. Which of the following is NOT a guideline for conducting a formal presentation?

all of these are guidelines for conducting a formal presentation

99. Which of the following variables is part of the return on investment analysis?

both estimated lifetime benefits and estimated lifetime costs

148. The ___________________________________ is a tool used to document similarities and differences between candidate systems.

candidate systems matrix

119. Measuring feasibility throughout the life cycle of an information system is known as the ___________________________________ approach to feasibility.

creeping commitment

84. Which kind of feasibility can be impacted by how the working environment of end users will change given the proposed system?

cultural or political feasibility

146. In an oral presentation, executives are usually put off by excessive _______________.

detail

131. Costs for a system fall into two categories: (1) the costs associated with _______________________________ the system; and (2) the costs associated with _______________________________ a system.

developing, operating

142. The ______________________________ rate is a percentage similar to interest rates and is used to determine the present value of a dollar based on an expected percentage of earnings potential.

discount

123. Written reports should be limited to one or two pages for _____________-level managers.

executive

19. In payback analysis the period of time that will elapse before accrued benefits overtake accrued costs is called the sunk costs period.

false

82. The measure or how beneficial or practical the development of an information system will be to an organization is known as:

feasibility

126. The __________________________________ matrix complements the candidate systems matrix with an analysis and ranking of the candidate systems.

feasibility analysis

101. Which of the following tools provides a ranking of candidate systems?

feasibility analysis matrix

133. Increased customer goodwill is an example of a(n) _____________________ benefit.

intangible

106. Which of the following is a fixed operating cost?

lease payment

86. Which kind of feasibility can be impacted by government mandates?

legal feasibility

81. Which of the following is NOT a question that addresses cultural/political feasibility?

none of these

83. Which kind of feasibility asks how well the proposed system satisfies the identified system requirements?

operational feasibility

143. The discount rate for a business is the _________________________ cost of being able to invest money in other projects, including the possibility of investing in the stock market or other financial instruments.

opportunity

98. The cost of the ability to invest in alternative projects rather than the project under consideration is known as:

opportunity cost

97. A simple and popular technique for determining if and when an investment will pay for itself is known as:

payback analysis

121. The three techniques for assessing economic feasibility are _________________________, _______________________, and _______________________.

payback analysis, return on investment, net present value

92. Which of the following is a term for the period of time that will elapse before accrued benefits overtake accrued costs?

payback period

108. Which of the following is not a feasibility test used in the text?

personal

118. List one example of a fixed cost: _______________________________

possibilities - lease payments, salaries, etc.

122. The current value of a future dollar is called ___________________.

present value

124. In a written report the ______________________ elements present the actual information the report is intended to convey.

primary

95. Which of the following is an example of a tangible benefit?

reduced credit losses

145. The _________________________________________ technique compares the lifetime profitability of alternative solutions or projects.

return on investment analysis (ROI)

125. In a written report the ______________________ elements package the report so the reader can easily identify the report and its primary elements.

secondary

144. Visual aids used in presentations, like written paragraphs, should convey a(n) ___________ idea.

single

149. The template for a candidate systems matrix includes the following categories to facilitate comparison among alternatives: ______________________________, _______________________________, ____________________ and _____________________________.

stakeholders, knowledge, processes, communications

132. Increased sales is an example of a(n) _____________________ benefit.

tangible

94. Benefits that can be easily quantified are known as:

tangible

85. Which kind of feasibility is concerned with whether the organization has the skills needed to properly apply a given technology?

technical feasibility

96. When determining the cost-effectiveness of a project, which of the following is an important concept to understand?

the time value of money

120. The __________ value of money is a concept shared by all techniques for assessing economic feasibility.

time

104. Which of the following is NOT a technique for assessing economic feasibility?

time value of money

139. The concept of the ____________________________________ states that a dollar today is worth more than a dollar one year from now.

time value of money

93. Costs that occur in proportion to some usage factor are known as:

variable

14. A yearly maintenance agreement on computer equipment is an example of a variable cost.

False

18. The concept of the time value of money states that a dollar one year from now is worth more than a dollar today.

False

2. Credibility is the measure of how beneficial or practical the development of an information system will be to an organization.

False

28. A net present value calculation computes a percentage.

False

31. Technical feasibility looks at the computer hardware, and considers the MIPS rate and data transfer rates as exclusive measures of technical feasibility.

False

33. Today, information systems development products are so easy to use, managers no longer need to consider the learning curve for using the technology as part of the technical feasibility for a project.

False

35. Studies suggest that sentences longer than 20 words are more persuasive.

False

38. When answering questions during a presentation, direct all your attention to the person who asked the question, not the entire group.

False

45. Variable costs occur at regular intervals but at relatively fixed rates, for example: lease payments, software license payments, prorated salaries of personnel.

False

46. Fixed costs occur in proportion to some usage factor, for example: computer usage, supplies, overhead costs.

False

48. Intangible benefits are those that can be easily quantified.

False

49. Tangible benefits are those benefits believed to be difficult or impossible to quantify.

False

5. The complexity of an apparently feasible project rarely, if ever, changes after the initial problems and opportunities are fully analyzed or after the system has been designed.

False

51. Examples of intangible benefits include: fewer processing errors, increased throughput, decreased response time, elimination of job steps, increased sales, reduced credit losses, reduced expenses.

False

52. Examples of tangible benefits include: improved customer goodwill; improved employee morale; better service to community; and better decision making.

False

58. It is not possible to compute a payback period because it is impossible to estimate current and future costs of a system.

False

62. It is not possible to calculate the present value of a dollar at any time in the future; it is too complicated of a concept to be expressed as a mathematical formula.

False

66. The formula for return on investment is: Lifetime ROI = (Estimated lifetime costs - Estimated lifetime benefits) / Estimated lifetime benefits

False

68. The return on investment (ROI) technique is considered the preferred cost-benefit technique by many managers, especially those who have substantial business schooling.

False

79. The candidate systems matrix complements the feasibility analysis matrix with an analysis and ranking of the candidate systems.

False

9. Technical feasibility is a measure of how well a proposed system solves the problems and takes advantages of the opportunities envisioned for the system.

False

129. ____________________________ is the measure of how beneficial or practical the development of an information system will be to an organization.

Feasibility

135. __________________________ costs occur at regular intervals but at relatively known rates, for example: lease payments, software license payments, prorated salaries of personnel.

Fixed

128. _______________________________________ are special meetings used to sell new ideas and gain approval for new systems. They may also be used for any of these purposes: sell a new system; sell new ideas; sell change; head off criticism; address concerns; verify conclusions; clarify facts; and report progress.

Formal presentations

91. Which of the following questions is NOT considered when looking at technical feasibility?

How do the end-users feel about their role in the new system?

112. _________________________ feasibility is a measure of how reasonable the project timetable is.

Schedule

43. Fixed costs occur at regular intervals but at relatively fixed rates, for example: lease payments, software license payments, prorated salaries of personnel.

True

44. Variable costs occur in proportion to some usage factor, for example: computer usage, supplies, overhead costs.

True

115. ____________________ feasibility asks the question: What end users or managers may resist the system?

Cultural or political

130. _______________________ feasibility is a measure of how well the solution will be accepted in a given organizational climate.

Cultural or political

113. ________________________ feasibility is a measure of the cost-effectiveness of a project or solution. This is often called a cost-benefit analysis.

Economic

102. Which of the following sentences would be best to use in a system proposal report?

If we adopt candidate one we would need to hire programmers who know the Java language.

138. __________________________________ benefits are those benefits believed to be difficult or impossible to quantify.

Intangible

114. ________________________ feasibility is a measure of how well a solution can be implemented within existing legal and contractual obligations.

Legal

140. __________________ is an analysis technique that compares the annual discounted costs and benefits of alternative solutions.

Net present value

109. Which of the following is NOT a guideline for answering questions during a formal presentation?

Never try to bluff.

100. Which of the following is NOT an approach for identifying candidate solutions?

Only consider building the application in-house

110. _______________________________ feasibility is a measure of how well the solution will work in the organization. It is a measure of how people feel about the system/project.

Operational

116. __________________ feasibility evaluates whether a system can work; ____________________ feasibility evaluates whether a system will work in a given organizational climate.

Operational, cultural/political

141. ________________________ analysis is a simple and popular technique for determining if and when an investment will pay for itself.

Payback

111. _____________________________ feasibility is a measure of the practicality of a specific technical solution and the availability of technical resources and expertise.

Technical

1. Feasibility is the measure of how beneficial or practical the development of an information system will be to an organization.

True

10. Technical feasibility is a measure of the practicality of a technical solution.

True

11. Schedule flexibility is a measure of how reasonable a project timetable is.

True

12. Economic feasibility is a measure of the cost-effectiveness of a project or solution.

True

13. Legal feasibility includes how well a solution can be implemented within existing contractual obligations.

True

15. The cost of printer paper is an example of a variable cost.

True

16. A cost-benefit analysis that includes intangible benefits is often not acceptable.

True

20. In performing a payback analysis one needs to adjust costs and benefits for the time value of money.

True

21. The higher the discount rate that is used in the calculation, the lower is the present value of a future dollar.

True

22. Payback analyses done without adjusting for the time value of money tend to be overly optimistic and misleading.

True

23. During the early phases of the project, judging the potential benefits of solving the problem is the priority since it is practically impossible to estimate costs.

True

24. It is common for an information system to change the structure of how information is routed and controlled, changing the power structure of an organization.

True

25. Where operational feasibility evaluates whether a system can work, cultural/political feasibility asks whether a system will work in a given organizational climate.

True

26. Formal presentations are special meetings used to sell new ideas and gain approval for new systems. They may also be used for any of these purposes: sell a new system; sell new ideas; sell change; head off criticism; address concerns; verify conclusions; clarify facts; and report progress.

True

29. Net present value computes a dollar value.

True

3. Measuring feasibility throughout the life cycle of an information system is known as the creeping commitment approach to feasibility.

True

30. Technical feasibility looks at what is practical and reasonable. It addresses three major issues: (1) Is the proposed technology or solution practical? (2) Do we currently possess the necessary technology? (3) Do we possess the necessary technical expertise?

True

32. The learning curve for using technology can impact the technical feasibility of a project.

True

34. The bottom line in many projects is economic feasibility.

True

36. The costs associated with developing a system can be estimated from the outset of a project, and should be refined at the end of each phase of the project.

True

39. When considering the cost of a project, personnel costs, such as the salaries of systems analysts, programmers, consultants, data entry personnel, computer operators, secretaries, and the like who work on the project, need to be prorated to reflect the time spent on the projects being estimated.

True

4. The complexity of an apparently feasible project can change after the initial problems and opportunities are fully analyzed or after the system has been designed.

True

40. When considering the cost of a project, computer usage and the costs associated with programming, testing, conversion, word processing, maintaining a project dictionary, prototyping, loading new data files, as well as disk storage and printing costs, need to be estimated.

True

41. When considering the cost of a project, the cost of any new computer equipment and software must be estimated.

True

42. The following categories of costs need to be considered during cost-benefit analysis: personnel; computer usage; training; supply, duplication, and equipment costs; and cost of any new computer equipment and software.

True