Question 1

What does TCO stand for?

Accepted Answer

Total cost of ownership (TCO)

Question 2

All of the following are new roles found in an organization today EXCEPT:

Accepted Answer

A)   Community manager
B)   Chief Social Media Officer
C)   Chief Knowledge Officer
D)   Chief Privacy Officer
E)   Database administrator E

Question 3

This is a plan designed to counter a manmade or natural disaster that could cripple an enterprise.

Accepted Answer

A)   Business Continuity Plan
B)   Disaster Recovery Plan
C)   Business Disaster Plan
D)   Disaster Business Case
E)   Business-IT Maturity Model A

Question 4

Sam has just purchased 10 new high speed color laser printers for his company. He is very excited because he got a 40% discount and paid only $2,990 for each unit. His boss,Joe,wants to know things such as operating costs,support,overhead,etc.for the printers. Joe wants to know this value:

Accepted Answer

A)   RCO
B)   TCO
C)   ROI
D)   NPV
E)   EVM

Question 5

The scope of responsibilities for an IT organization has been expanding over the years.

Accepted Answer

A) True 
 B)False

Question 6

The balanced scorecard:

Accepted Answer

A)   Is a tool used to communicate the organizational metrics using a traffic light approach (red/yellow/green) .
B)   Is a method used to evaluate the health of an organization by looking at all value drivers such as the customers, the workforce, the financials and business processes.
C)   Focuses its attention on an organization's financials.
D)   Is used to communicate the TCO for an IT investment.
E)   Is one of many metrics used to evaluate the value of an IT investment.

Question 7

A local marketing firm is considering launching a new and extensive social media marketing campaign. This investment of resources is being looked at through the length of the project since it is anticipated to last at least 5 years. What financial calculation should be used to compute the time value of money?

Accepted Answer

A)   ROI
B)   NPV
C)   EVA
D)   IRR
E)   TCO

Question 8

The business side of IT is very different from the business itself.

Accepted Answer

A) True 
 B)False

Question 9

Match the funding model to its method by which costs are recovered.

Accepted Answer

The answer of Match the funding model to its method...

Question 10

Financial measures are the sole means for making management decisions.

Accepted Answer

A) True 
 B)False

Question 11

Match the activity an IT organization provides with its description.

Accepted Answer

The answer of Match the activity an IT organization provides...

Question 12

An IT dashboard provides:

Accepted Answer

A)   Summary information gathered over a period of time.
B)   Statistics on system usage.
C)   A distraction from where more IT attention should be focused.
D)   Current and critical measurements for the organization in an easy to read manner.
E)   A snapshot of financial data at any given point in time.

Question 13

The allocation method is the most equitable funding method used by many IT organizations.

Accepted Answer

A) True 
 B)False

Question 14

Often the customer of an IT organization is not an external customer but rather an internal customer.

Accepted Answer

A) True 
 B)False

Question 15

Describe at least one new role emerging in organizations today as a result of social business.

Accepted Answer

The answer of Describe at least one new role emerging...

Question 16

A CIO must spend part of the day performing _____ tasks and the some part of the day working on operational tasks.Rarely can a CIO focus on just one task in any given day.

Accepted Answer

A)   Administrative
B)   Strategic
C)   Database
D)   Financial
E)   Technology

Question 17

In the early days of IT,the CIO would report to the ____ as IT was seen as a way to control costs.As technology has become more strategic and able to deliver a competitive advantage,CIOs now report directly to the ____.

Accepted Answer

A)   CFO; CEO
B)   CEO; CFO
C)   CFO; COO
D)   COO; CEO
E)   CEO; CTO

Question 18

A company that seeks an IT portfolio that lowers costs as the primary business objective will be more likely to increase spending on ___________ because these applications can help automate processes.

Accepted Answer

A)   strategic systems
B)   infrastructure
C)   informational systems
D)   transactional systems
E)   social media

Question 19

Joe works for a company where the IT department charges him for the number of CRM login accounts that are in his department. What type of IT funding model is his company deploying?

Accepted Answer

A)   Allocation
B)   Corporate budgeting
C)   Usage
D)   TCO
E)   Chargeback

Question 20

Match the dashboard with its appropriate description.

Accepted Answer

The answer of Match the dashboard with its appropriate description.
...

Exam 7: Cost Recovery of Information Systems

What does TCO stand for?

All of the following are new roles found in an organization today EXCEPT:

This is a plan designed to counter a manmade or natural disaster that could cripple an enterprise.

Sam has just purchased 10 new high speed color laser printers for his company. He is very excited because he got a 40% discount and paid only $2,990 for each unit. His boss,Joe,wants to know things such as operating costs,support,overhead,etc.for the printers. Joe wants to know this value:

The scope of responsibilities for an IT organization has been expanding over the years.

The balanced scorecard:

The business side of IT is very different from the business itself.

Match the funding model to its method by which costs are recovered.

Financial measures are the sole means for making management decisions.

Match the activity an IT organization provides with its description.

An IT dashboard provides:

The allocation method is the most equitable funding method used by many IT organizations.

Often the customer of an IT organization is not an external customer but rather an internal customer.

Describe at least one new role emerging in organizations today as a result of social business.

A CIO must spend part of the day performing _____ tasks and the some part of the day working on operational tasks.Rarely can a CIO focus on just one task in any given day.

In the early days of IT,the CIO would report to the as IT was seen as a way to control costs.As technology has become more strategic and able to deliver a competitive advantage,CIOs now report directly to the .

A company that seeks an IT portfolio that lowers costs as the primary business objective will be more likely to increase spending on ___________ because these applications can help automate processes.

Joe works for a company where the IT department charges him for the number of CRM login accounts that are in his department. What type of IT funding model is his company deploying?

Match the dashboard with its appropriate description.