Question 1

Return on investment analysis considers costs and benefits over a shorter time span than payback analysis.

Accepted Answer

A) True 
 B)False

Question 2

With a no charge method, indirect IT department costs are _____.

Accepted Answer

A)  treated as general organizational costs and not charged to other departments 
B)  allocated to other departments based on user-oriented activity 
C)  varied from month to month, depending on a department's use of resources 
D)  divided among all departments in the form of a set monthly charge 
A)  treated as general organizational costs and not charged to other departments 
B)  allocated to other departments based on user-oriented activity 
C)  varied from month to month, depending on a department's use of resources 
D)  divided among all departments in the form of a set monthly charge

Question 3

Operational costs are incurred only once at the time the system is developed or acquired.

Accepted Answer

A) True 
 B)False

Question 4

If a spreadsheet program includes a built-in present value function, the program inputs the formula and users input the _____.

Accepted Answer

A)  amount 
B)  discount rate 
C)  number of time periods 
D)  all of the above 
A)  amount 
B)  discount rate 
C)  number of time periods 
D)  all of the above

Question 5

Some managers are critical of payback analysis because it places all the emphasis on early costs and benefits and ignores the benefits received after the payback period.

Accepted Answer

A) True 
 B)False

Question 6

In present value analysis, most companies require a rate of return that is higher than the discount rate because of the degree of risk compared with investing in a bond.

Accepted Answer

A) True 
 B)False

Question 7

ROI is calculated with the formula _____.

Accepted Answer

A)  ROI = (total benefits - total costs) / total costs 
B)  ROI = (total costs - total benefits) / total costs 
C)  ROI = (total benefits - total costs) / total benefits 
D)  ROI = (total costs - total benefits) / total benefits 
A)  ROI = (total benefits - total costs) / total costs 
B)  ROI = (total costs - total benefits) / total costs 
C)  ROI = (total benefits - total costs) / total benefits 
D)  ROI = (total costs - total benefits) / total benefits

Question 8

With a fixed charge method, the IT group is regarded as a(n) ____________________, which is a department that is expected to break even or show a profit.

Accepted Answer

The answer of With a fixed charge method, the IT...

Question 9

When conducting a payback analysis, the time it takes for the accumulated benefits of an information system to equal the accumulated costs of developing and operating the system are calculated.

Accepted Answer

A) True 
 B)False

Question 10

____________________ is the process of determining how long it takes an information system to pay for itself.

Accepted Answer

The answer of ____________________ is the process of determining how...

Question 11

Payback analysis often is used to compare or rank projects because later benefits are noticed.

Accepted Answer

A) True 
 B)False

Question 12

The ____________________ of a project is the total present value of the benefits minus the total present value of the costs.

Accepted Answer

net present value (N

Question 13

____________________ is the charging of indirect IT department costs based on the resources used by an information system.

Accepted Answer

The answer of ____________________ is the charging of indirect IT...

Question 14

____________________ is the total time that a user is connected actively to a remote server - some Internet service providers use this as a basis for charges.

Accepted Answer

The answer of ____________________ is the total time that a...

Question 15

With a variable charge method based on volume, indirect IT department costs are _____.

Accepted Answer

A)  treated as general organizational costs and not charged to other departments 
B)  allocated to other departments based on user-oriented activity 
C)  varied from month to month, depending on a department's use of resources 
D)  divided among all departments in the form of a set monthly charge 
A)  treated as general organizational costs and not charged to other departments 
B)  allocated to other departments based on user-oriented activity 
C)  varied from month to month, depending on a department's use of resources 
D)  divided among all departments in the form of a set monthly charge

Question 16

When determining economic feasibility, a systems analyst must consider a project's benefits compared to the project's ____________________, which includes ongoing support and maintenance costs, as well as acquisition costs.

Accepted Answer

total cost of owners

Question 17

Variable costs are costs that vary depending on the level of activity.

Accepted Answer

A) True 
 B)False

Question 18

Direct costs usually are more difficult to identify and predict than indirect costs.

Accepted Answer

A) True 
 B)False

Question 19

The cost of customer dissatisfaction, lower employee morale, and reduced information availability are examples of _____.

Accepted Answer

A)  tangible costs 
B)  fixed costs 
C)  intangible costs 
D)  variable costs 
A)  tangible costs 
B)  fixed costs 
C)  intangible costs 
D)  variable costs

Question 20

Cost-benefit analysis is performed _____ to determine the economic feasibility of an information system project and to compare alternative solutions.

Accepted Answer

A)  at the beginning of the SDLC 
B)  in the middle of the SDLC 
C)  at the end of the SDLC 
D)  throughout the SDLC 
A)  at the beginning of the SDLC 
B)  in the middle of the SDLC 
C)  at the end of the SDLC 
D)  throughout the SDLC

Return on investment analysis considers costs and benefits over a shorter time span than payback analysis.

With a no charge method, indirect IT department costs are _____.

Operational costs are incurred only once at the time the system is developed or acquired.

If a spreadsheet program includes a built-in present value function, the program inputs the formula and users input the _____.

Some managers are critical of payback analysis because it places all the emphasis on early costs and benefits and ignores the benefits received after the payback period.

In present value analysis, most companies require a rate of return that is higher than the discount rate because of the degree of risk compared with investing in a bond.

ROI is calculated with the formula _____.

With a fixed charge method, the IT group is regarded as a(n) ____________________, which is a department that is expected to break even or show a profit.

When conducting a payback analysis, the time it takes for the accumulated benefits of an information system to equal the accumulated costs of developing and operating the system are calculated.

____________________ is the process of determining how long it takes an information system to pay for itself.

Payback analysis often is used to compare or rank projects because later benefits are noticed.

The ____________________ of a project is the total present value of the benefits minus the total present value of the costs.

____________________ is the charging of indirect IT department costs based on the resources used by an information system.

____________________ is the total time that a user is connected actively to a remote server - some Internet service providers use this as a basis for charges.

With a variable charge method based on volume, indirect IT department costs are _____.

When determining economic feasibility, a systems analyst must consider a project's benefits compared to the project's ____________________, which includes ongoing support and maintenance costs, as well as acquisition costs.

Variable costs are costs that vary depending on the level of activity.

Direct costs usually are more difficult to identify and predict than indirect costs.

The cost of customer dissatisfaction, lower employee morale, and reduced information availability are examples of _____.

Cost-benefit analysis is performed _____ to determine the economic feasibility of an information system project and to compare alternative solutions.

Introduction to Systems Analysis and Design

Analyzing the Business Case

Managing Systems Projects

Requirements Modeling

Data and Process Modeling

Object Modeling

Development Strategies

User Interface Design

Data Design

System Architecture

Managing Systems Implementation

Managing Systems Support and Security

Communication Tools

CASE Tools

Internet Resource Tools

Filters

Exam 15: Financial Analysis Tools

Return on investment analysis considers costs and benefits over a shorter time span than payback analysis.

With a no charge method, indirect IT department costs are _____.

Operational costs are incurred only once at the time the system is developed or acquired.

If a spreadsheet program includes a built-in present value function, the program inputs the formula and users input the _____.

Some managers are critical of payback analysis because it places all the emphasis on early costs and benefits and ignores the benefits received after the payback period.

In present value analysis, most companies require a rate of return that is higher than the discount rate because of the degree of risk compared with investing in a bond.

ROI is calculated with the formula _____.

With a fixed charge method, the IT group is regarded as a(n) ____________________, which is a department that is expected to break even or show a profit.

When conducting a payback analysis, the time it takes for the accumulated benefits of an information system to equal the accumulated costs of developing and operating the system are calculated.

____________________ is the process of determining how long it takes an information system to pay for itself.

Payback analysis often is used to compare or rank projects because later benefits are noticed.

The ____________________ of a project is the total present value of the benefits minus the total present value of the costs.

____________________ is the charging of indirect IT department costs based on the resources used by an information system.

____________________ is the total time that a user is connected actively to a remote server - some Internet service providers use this as a basis for charges.

With a variable charge method based on volume, indirect IT department costs are _____.

When determining economic feasibility, a systems analyst must consider a project's benefits compared to the project's ____________________, which includes ongoing support and maintenance costs, as well as acquisition costs.

Variable costs are costs that vary depending on the level of activity.

Direct costs usually are more difficult to identify and predict than indirect costs.

The cost of customer dissatisfaction, lower employee morale, and reduced information availability are examples of _____.

Cost-benefit analysis is performed _____ to determine the economic feasibility of an information system project and to compare alternative solutions.

Introduction to Systems Analysis and Design

Analyzing the Business Case

Managing Systems Projects

Requirements Modeling

Data and Process Modeling

Object Modeling

Development Strategies

User Interface Design

Data Design

System Architecture

Managing Systems Implementation

Managing Systems Support and Security

Communication Tools

CASE Tools

Internet Resource Tools

Filters