Question 1

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

Accepted Answer

A)  SWOT-check analysis 
B)  Economical detriment analysis 
C)  Contrast analysis 
D)  Cost-benefit analysis 
A)  SWOT-check analysis 
B)  Economical detriment analysis 
C)  Contrast analysis 
D)  Cost-benefit analysis D

Question 2

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 is calculated.

Accepted Answer

A) True 
 B)False  True

Question 3

Unlike payback analysis,present value analysis considers only the earlier values and not all the costs and benefits.

Accepted Answer

A) True 
 B)False  False

Question 4

Intangible costs are costs that can be assigned a specific dollar value.

Accepted Answer

A) True 
 B)False

Question 5

Which is an example of operational costs?

Accepted Answer

A)  Project team members' salaries 
B)  Software purchases 
C)  Initial user training costs 
D)  System maintenance evaluations 
A)  Project team members' salaries 
B)  Software purchases 
C)  Initial user training costs 
D)  System maintenance evaluations

Question 6

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

Accepted Answer

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

Question 7

Which concept includes ongoing support and maintenance costs as well as acquisition costs?

Accepted Answer

A)  overhead expenses 
B)  total cost of ownership 
C)  time value of money 
D)  resource allocation 
A)  overhead expenses 
B)  total cost of ownership 
C)  time value of money 
D)  resource allocation

Question 8

Which process involves determining how long it takes an information system to pay for itself?

Accepted Answer

A)  present value analysis 
B)  cost-benefit analysis 
C)  return on investment analysis 
D)  payback analysis 
A)  present value analysis 
B)  cost-benefit analysis 
C)  return on investment analysis 
D)  payback analysis

Question 9

Positive benefits increase revenues,improve services,or otherwise contribute to an organization as a direct result of a new information system.

Accepted Answer

A) True 
 B)False

Question 10

When comparing the net present values of projects,all things being equal,the project with the lowest net present value is the best investment.

Accepted Answer

A) True 
 B)False

Question 11

Provide examples of cost-avoidance benefits.

Accepted Answer

Cost-avoidance benefits refer to expense

Question 12

Identify an example of fixed costs.

Accepted Answer

A)  Consumable supplies costs 
B)  Printer paper costs 
C)  Hardware rental charges 
D)  Telephone charges 
A)  Consumable supplies costs 
B)  Printer paper costs 
C)  Hardware rental charges 
D)  Telephone charges

Question 13

Fixed costs are costs that are relatively constant and do not depend on a level of activity or effort.

Accepted Answer

A) True 
 B)False

Question 14

In a fixed charge method,the IT group is regarded as a _____ center,which is a department that is expected to break even or show a profit.

Accepted Answer

A)  profit 
B)  feasibility 
C)  resource 
D)  volume 
A)  profit 
B)  feasibility 
C)  resource 
D)  volume

Question 15

Identify an example of direct costs.

Accepted Answer

A)  Project team members' salaries 
B)  Power consumption costs 
C)  Copy machine rentals 
D)  Insurance expenses 
A)  Project team members' salaries 
B)  Power consumption costs 
C)  Copy machine rentals 
D)  Insurance expenses

Question 16

Payback analysis that is recorded and calculated in spreadsheets requires a formula to display cumulative totals,year by year.

Accepted Answer

A) True 
 B)False

Question 17

The _____ value of a future dollar is the amount of money that,when invested today at a specified interest rate,grows to exactly one dollar at a certain point in the future.

Accepted Answer

A)  projected 
B)  present 
C)  potential 
D)  perceived 
A)  projected 
B)  present 
C)  potential 
D)  perceived

Question 18

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 19

Which is an example of indirect costs?

Accepted Answer

A)  Project team members' salaries 
B)  Hardware purchases used only for new systems 
C)  Consumable supplies costs 
D)  Insurance expenses 
A)  Project team members' salaries 
B)  Hardware purchases used only for new systems 
C)  Consumable supplies costs 
D)  Insurance expenses

Question 20

Which term is used for the total time that a user is connected actively to a remote server?

Accepted Answer

A)  connect time 
B)  download speed 
C)  processing speed 
D)  costing time 
A)  connect time 
B)  download speed 
C)  processing speed 
D)  costing time

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

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 is calculated.

Unlike payback analysis,present value analysis considers only the earlier values and not all the costs and benefits.

Intangible costs are costs that can be assigned a specific dollar value.

Which is an example of operational costs?

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

Which concept includes ongoing support and maintenance costs as well as acquisition costs?

Which process involves determining how long it takes an information system to pay for itself?

Positive benefits increase revenues,improve services,or otherwise contribute to an organization as a direct result of a new information system.

When comparing the net present values of projects,all things being equal,the project with the lowest net present value is the best investment.

Provide examples of cost-avoidance benefits.

Identify an example of fixed costs.

Fixed costs are costs that are relatively constant and do not depend on a level of activity or effort.

In a fixed charge method,the IT group is regarded as a _____ center,which is a department that is expected to break even or show a profit.

Identify an example of direct costs.

Payback analysis that is recorded and calculated in spreadsheets requires a formula to display cumulative totals,year by year.

The _____ value of a future dollar is the amount of money that,when invested today at a specified interest rate,grows to exactly one dollar at a certain point in the future.

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.

Which is an example of indirect costs?

Which term is used for the total time that a user is connected actively to a remote server?

Introduction to Systems Analysis and Design

Analyzing the Business Case

Managing Systems Projects

Requirements Engineering

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

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

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 is calculated.

Unlike payback analysis,present value analysis considers only the earlier values and not all the costs and benefits.

Intangible costs are costs that can be assigned a specific dollar value.

Which is an example of operational costs?

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

Which concept includes ongoing support and maintenance costs as well as acquisition costs?

Which process involves determining how long it takes an information system to pay for itself?

Positive benefits increase revenues,improve services,or otherwise contribute to an organization as a direct result of a new information system.

When comparing the net present values of projects,all things being equal,the project with the lowest net present value is the best investment.

Provide examples of cost-avoidance benefits.

Identify an example of fixed costs.

Fixed costs are costs that are relatively constant and do not depend on a level of activity or effort.

In a fixed charge method,the IT group is regarded as a _____ center,which is a department that is expected to break even or show a profit.

Identify an example of direct costs.

Payback analysis that is recorded and calculated in spreadsheets requires a formula to display cumulative totals,year by year.

The _____ value of a future dollar is the amount of money that,when invested today at a specified interest rate,grows to exactly one dollar at a certain point in the future.

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.

Which is an example of indirect costs?

Which term is used for the total time that a user is connected actively to a remote server?

Introduction to Systems Analysis and Design

Analyzing the Business Case

Managing Systems Projects

Requirements Engineering

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