Systems Analysis and Design Chapter 4

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)

Which of the following is a section of the Baseline Project Plan?

All of the Above

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

Baseline project plan

A major outcome and deliverable from the project initiation and planning phase that contains an estimate of the project's scope, benefits, costs, risks, and resource requirements best defines

Baseline project plan

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)

All of the following might attend a structured walkthrough meeting EXCEPT

CEO

Which of the following alternative methods for making information systems identification and selection decisions has as it's focus integration with existing systems?

Development group

The use of telecommunications technologies to transfer business documents directly between organizations best defines

Electronic Data Interchange (EDI)

Which of the following would be classified as an intangible cost?

Employee morale

Which of the following is not a project initiation activity?

Establishing management procedures

Which of the following is not a project planning activity?

Establishing management procedures

Which of the following is a project planning activity?

Estimating resources and creating a resource plan

An Internet-based communication that supports business-to-business activities best describes

Extranet

Which of the following is one of the three primary activities associated with identifying and selecting IS development projects?

Identification of potential development projects

The extent to which the project is viewed as improving profits, customer service, etc., and the duration of these benefits best defines which of the following evaluation criteria?

Potential benefits

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:

Project Scope Statement

The objective of the project planning process is the development of

a baseline project plan and project scope statement

The primary deliverable from the project identification and selection phase is

a schedule of specific IS development projects

Potential development projects can be identified by

a steering committee

If the project team and organizational officials reassess the project after each subsequent SDLC phase to determine if the business conditions have changed or if a more detailed understanding of a system's costs, benefits and risks suggest that the project is not as worthy as previously thought, they are

adhering to the incremental commitment principle

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

Which of the following would be classified as a tangible cost?

cost of hardware

The interest rate used to compute the present value of future cash flows refers to

discount rate

To identify the financial benefits and costs associated with the development project is the purpose of

economic feasibility

Which of the following is a project initiation activity?

establishing a relationship with the customer

Research has found that projects identified by individual departments or business units

have a narrow tactical focus

Research has found that projects identified by top management more often

have a strategic, organizational focus

A department head deciding which project requests to submit is an example of

identifying potential development projects.

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 a(n)

intangible cost

The Project Scope Statement

is a short document prepared for the customer that describes what the project will deliver and outlines all work required to complete the project.

Tangible benefits would include

lower transaction costs

A cost associated with project start-up and development or system start-up refers to a(n)

one-time cost

The current value of a future cash flow is referred to as

present value

Activities designed to assist in organizing a team to conduct project planning is the focus of

project initiation

A cost resulting from the ongoing evolution and use of a system best defines a(n)

recurring cost

Application software maintenance, new software and hardware leases, and incremental communications are examples of

recurring costs

The Baseline Project Plan

reflects the best estimate of the project's scope, benefits, costs, risks, and resource requirements give the current understanding of the project.

The extent to which the project is viewed as helping the organization achieve its strategic objectives and long-term goals describes

strategic alignment

A savings of $5,000 resulting from data entry error reductions would most likely be classified as a

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 benefits

A cost associated with an information system that can be measured in dollars and with certainty best describes

tangible cost

The concept of comparing present cash outlays to future expected returns best defines

time value of money

Analyzing an organization's activities to determine where value is added to products and/or services and the costs incurred best describes

value chain analysis

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

Return on Investment (ROI)

A peer-group review of any product created during the systems development process is called a(n)

Structured walkthrough

The first phase of the systems development life cycle is

Systems planning and selection

Cost reduction and avoidance, error reduction, and increased flexibility are examples of

Tangible benefits

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 goal of

Technical feasibility

Which of the following alternative methods for making information systems identification and selection decision has the highest associated cost?

Top management

Which of the following possible project sources most often reflects the broader needs of the organization?

Top management