Question 1

How can inefficient budget allocations among business units lead to organizational inefficiencies?

Accepted Answer

Strategic IT investments involve the par

Question 2

IT is the single largest capital expenditure in all organizations.

Accepted Answer

A) True 
 B)False

Question 3

Define the concept of cost allocation. Can internal IT costs be viewed as an expense to business units? Why or why not?

Accepted Answer

Cost allocation-the process of allocatin

Question 4

________ are used by IT managers as spending plans.

Accepted Answer

A)  Functional IT budgets 
B)  Fiscal IT budgets 
C)  Strategic investments 
D)  Capital budgets 
A)  Functional IT budgets 
B)  Fiscal IT budgets 
C)  Strategic investments 
D)  Capital budgets

Question 5

Since the budget process is inherently biased toward the short term, operational needs will systematically preempt strategic ones.

Accepted Answer

A) True 
 B)False

Question 6

Budgets can affect ________ in many ways.

Accepted Answer

A)  IT strategy implementation 
B)  competitive advantage 
C)  strategic investments 
D)  operations management 
A)  IT strategy implementation 
B)  competitive advantage 
C)  strategic investments 
D)  operations management

Question 7

The budgeting process can often undercut management's strategic intentions, causing organizations to choose between strategic investment opportunities.

Accepted Answer

A) True 
 B)False

Question 8

The operational cost of IT can be viewed as a:

Accepted Answer

A)  corporate expense. 
B)  unit expense. 
C)  strategic expense. 
D)  IT expense. 
E)  Both A and B 
A)  corporate expense. 
B)  unit expense. 
C)  strategic expense. 
D)  IT expense. 
E)  Both A and B

Question 9

The part of the IT budget that includes spending on business improvement initiatives to streamline processes and cut costs is called:

Accepted Answer

A)  operations costs. 
B)  capital costs. 
C)  strategic investments. 
D)  staffing costs. 
E)  application development costs. 
A)  operations costs. 
B)  capital costs. 
C)  strategic investments. 
D)  staffing costs. 
E)  application development costs.

Question 10

An inefficient way to allocate strategic expenses is on the basis of which business unit will benefit from the investment.

Accepted Answer

A) True 
 B)False

Question 11

________ are often not created with IT spending in mind but can significantly impact how a fiscal IT budget is created.

Accepted Answer

A)  Strategic plans 
B)  Strategic investments 
C)  Corporate fiscal policies 
D)  Capital investments 
E)  Both A and D 
A)  Strategic plans 
B)  Strategic investments 
C)  Corporate fiscal policies 
D)  Capital investments 
E)  Both A and D

Question 12

The IT budgeting process often:

Accepted Answer

A)  is sufficient in most organizations. 
B)  is sufficient but consumes too much managerial time. 
C)  takes too long and consumes too much managerial time. 
D)  takes too long and consumes too much managerial and governance time. 
A)  is sufficient in most organizations. 
B)  is sufficient but consumes too much managerial time. 
C)  takes too long and consumes too much managerial time. 
D)  takes too long and consumes too much managerial and governance time.

Question 13

Which process consists of establishing IT and business unit strategies?

Accepted Answer

A)  Establish corporate fiscal policy 
B)  Establish strategic goals 
C)  Set IT spending levels 
D)  Set functional IT budget. 
E)  Set the fiscal IT budget 
A)  Establish corporate fiscal policy 
B)  Establish strategic goals 
C)  Set IT spending levels 
D)  Set functional IT budget. 
E)  Set the fiscal IT budget

Question 14

There appears to be broad, general consensus that the IT budgeting process in many corporations is broken and needs to be fixed.

Accepted Answer

A) True 
 B)False

Question 15

In accounting, ________ are utilized to spread large expenses over several years.

Accepted Answer

A)  operating budgets. 
B)  capital budgets. 
C)  tactical budgets. 
D)  hardware and software budgets. 
E)  IT budgets. 
A)  operating budgets. 
B)  capital budgets. 
C)  tactical budgets. 
D)  hardware and software budgets. 
E)  IT budgets.

Question 16

Over time, IT investments become more about creating competitive advantages for organizations and less about following organizational routine and creating legitimacy for management.

Accepted Answer

A) True 
 B)False

Question 17

There are few accepted general accounting principles when it comes to IT spending.

Accepted Answer

A) True 
 B)False

Question 18

Fiscal IT budgets are broken down into two major categories:

Accepted Answer

A)  hardware expenses and software expenses. 
B)  capital expenses and operating expenses. 
C)  tactical expenses and operating expenses. 
D)  capital expenses and tactical expenses. 
A)  hardware expenses and software expenses. 
B)  capital expenses and operating expenses. 
C)  tactical expenses and operating expenses. 
D)  capital expenses and tactical expenses.

Question 19

Which of the following affects how much money an organization spends on IT?

Accepted Answer

A)  Competition 
B)  Diversification of products and services 
C)  Previous year's spending 
D)  Both A and B 
E)  All the above 
A)  Competition 
B)  Diversification of products and services 
C)  Previous year's spending 
D)  Both A and B 
E)  All the above

Question 20

The budgeting process reflects and reinforces the ability of operational decision making to have an impact.

Accepted Answer

A) True 
 B)False

How can inefficient budget allocations among business units lead to organizational inefficiencies?

IT is the single largest capital expenditure in all organizations.

Define the concept of cost allocation. Can internal IT costs be viewed as an expense to business units? Why or why not?

________ are used by IT managers as spending plans.

Since the budget process is inherently biased toward the short term, operational needs will systematically preempt strategic ones.

Budgets can affect ________ in many ways.

The budgeting process can often undercut management's strategic intentions, causing organizations to choose between strategic investment opportunities.

The operational cost of IT can be viewed as a:

The part of the IT budget that includes spending on business improvement initiatives to streamline processes and cut costs is called:

An inefficient way to allocate strategic expenses is on the basis of which business unit will benefit from the investment.

________ are often not created with IT spending in mind but can significantly impact how a fiscal IT budget is created.

The IT budgeting process often:

Which process consists of establishing IT and business unit strategies?

There appears to be broad, general consensus that the IT budgeting process in many corporations is broken and needs to be fixed.

In accounting, ________ are utilized to spread large expenses over several years.

Over time, IT investments become more about creating competitive advantages for organizations and less about following organizational routine and creating legitimacy for management.

There are few accepted general accounting principles when it comes to IT spending.

Fiscal IT budgets are broken down into two major categories:

Which of the following affects how much money an organization spends on IT?

The budgeting process reflects and reinforces the ability of operational decision making to have an impact.

Developing and Delivering on the IT Value Proposition

Developing IT Strategy for Business Value

Linking It to Business Metrics

Managing Perceptions of IT

IT in the New World of Corporate Governance Reforms

Creating and Evolving a Technology Roadmap

Information Management: the Nexus of Business and IT

IT in 2010

Strategic Experimentation With IT

Enhancing the Customer Experience With Technology

Information Delivery: ITS Evolving Role

Digital Dashboards

Managing Electronic Communications

Developing It Capabilities

It Sourcing

Delivering IT Functions: a Decision Framework

Building Better It Leaders From the Bottom up

Developing It Professionalism

Filters

Exam 7: The IT Budgeting Process

How can inefficient budget allocations among business units lead to organizational inefficiencies?

IT is the single largest capital expenditure in all organizations.

Define the concept of cost allocation. Can internal IT costs be viewed as an expense to business units? Why or why not?

________ are used by IT managers as spending plans.

Since the budget process is inherently biased toward the short term, operational needs will systematically preempt strategic ones.

Budgets can affect ________ in many ways.

The budgeting process can often undercut management's strategic intentions, causing organizations to choose between strategic investment opportunities.

The operational cost of IT can be viewed as a:

The part of the IT budget that includes spending on business improvement initiatives to streamline processes and cut costs is called:

An inefficient way to allocate strategic expenses is on the basis of which business unit will benefit from the investment.

________ are often not created with IT spending in mind but can significantly impact how a fiscal IT budget is created.

The IT budgeting process often:

Which process consists of establishing IT and business unit strategies?

There appears to be broad, general consensus that the IT budgeting process in many corporations is broken and needs to be fixed.

In accounting, ________ are utilized to spread large expenses over several years.

Over time, IT investments become more about creating competitive advantages for organizations and less about following organizational routine and creating legitimacy for management.

There are few accepted general accounting principles when it comes to IT spending.

Fiscal IT budgets are broken down into two major categories:

Which of the following affects how much money an organization spends on IT?

The budgeting process reflects and reinforces the ability of operational decision making to have an impact.

Developing and Delivering on the IT Value Proposition

Developing IT Strategy for Business Value

Linking It to Business Metrics

Managing Perceptions of IT

IT in the New World of Corporate Governance Reforms

Creating and Evolving a Technology Roadmap

Information Management: the Nexus of Business and IT

IT in 2010

Strategic Experimentation With IT

Enhancing the Customer Experience With Technology

Information Delivery: ITS Evolving Role

Digital Dashboards

Managing Electronic Communications

Developing It Capabilities

It Sourcing

Delivering IT Functions: a Decision Framework

Building Better It Leaders From the Bottom up

Developing It Professionalism

Filters