Exam 5: Initiating and Planning Systems Development Projects

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

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Match each of the following terms with its definition. -A process of identifying the financial benefits and costs associated with a development project.

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Match each of the following terms with its definition. -The process of assessing the degree to which a proposed system solves business problems or takes advantage of business opportunities.

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Improvement of management planning and control is a tangible benefit.

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

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A walkthrough is a peer group review of any product created during the systems development process.

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To gain an understanding of how key stakeholders within the organization view the proposed system is the purpose of:

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Match each of the following terms with its definition. -A cost associated with an information system that can be measured in dollars and with certainty.

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

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

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Assume a proposed system has a useful life of 5 years,one-time costs of $50,000,recurring costs of $25,000 per year,and tangible benefits of $45,000 per year.If the cost of capital is 10%,what is the overall NPV? Overall ROI? Break-even point?

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Infrastructure replacement/improvements,system maintenance costs,and user training and support are examples of:

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The Project Scope Statement clearly outlines the objectives and constraints of the project for the development group.

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Match each of the following terms with its definition. -A cost associated with an information system that cannot be easily measured in terms of dollars or with certainty.

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The objective of the project planning process is:

(Multiple Choice)
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Assume a proposed system has a useful life of 5 years,one-time costs of $1,000,000,recurring costs of $250,000 per year,and tangible benefits of $750,000 per year.If the cost of capital is 10%,what is the overall NPV? Overall ROI? Break-even point?

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How is project planning distinct from general information systems planning?

(Multiple Choice)
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Match each of the following terms with its definition. -The process of assessing potential legal and contractual ramifications due to the construction of a system.

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

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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:

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