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

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

Accepted Answer

A) True 
 B)False

Question 3

A(n)_____ method is a technique that uses accounting entries to allocate the indirect costs of running an IT department.

Accepted Answer

A)  annuity 
B)  feedback 
C)  chargeback 
D)  acquisition 
A)  annuity 
B)  feedback 
C)  chargeback 
D)  acquisition

Question 4

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 5

Explain the no charge method.

Accepted Answer

Some organizations treat information sys

Question 6

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 7

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 8

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 9

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

Accepted Answer

A) True 
 B)False

Question 10

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 11

_____ 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

Question 12

Critics of return on investment analysis raised a point that the return on investment (ROI)technique does not recognize the timing of costs and benefits.

Accepted Answer

A) True 
 B)False

Question 13

Critics of return on investment analysis raised a point that return on investment (ROI)measures the overall rate of return for a total period and annual return rates vary considerably.

Accepted Answer

A) True 
 B)False

Question 14

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 15

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 16

Cost-avoidance benefits refer to expenses that are necessary if a new system is not installed.

Accepted Answer

A) True 
 B)False

Question 17

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 18

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 19

In a client/server system,_____ time is the time that the server actually responds to client requests for processing.

Accepted Answer

A)  server processing 
B)  connection 
C)  resource allocation 
D)  chargeback 
A)  server processing 
B)  connection 
C)  resource allocation 
D)  chargeback

Question 20

Return on investment (ROI)is calculated using 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

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

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

A(n)_____ method is a technique that uses accounting entries to allocate the indirect costs of running an IT department.

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

Explain the no charge method.

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 fixed costs.

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

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

Which is an example of operational costs?

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

Critics of return on investment analysis raised a point that the return on investment (ROI)technique does not recognize the timing of costs and benefits.

Critics of return on investment analysis raised a point that return on investment (ROI)measures the overall rate of return for a total period and annual return rates vary considerably.

Which is an example of indirect costs?

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

Cost-avoidance benefits refer to expenses that are necessary if a new system is not installed.

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

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

In a client/server system,_____ time is the time that the server actually responds to client requests for processing.

Return on investment (ROI)is calculated using the formula _____.

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

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

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

A(n)_____ method is a technique that uses accounting entries to allocate the indirect costs of running an IT department.

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

Explain the no charge method.

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 fixed costs.

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

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

Which is an example of operational costs?

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

Critics of return on investment analysis raised a point that the return on investment (ROI)technique does not recognize the timing of costs and benefits.

Critics of return on investment analysis raised a point that return on investment (ROI)measures the overall rate of return for a total period and annual return rates vary considerably.

Which is an example of indirect costs?

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

Cost-avoidance benefits refer to expenses that are necessary if a new system is not installed.

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

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

In a client/server system,_____ time is the time that the server actually responds to client requests for processing.

Return on investment (ROI)is calculated using the formula _____.

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