Question 1

With a variable charge method based on resource usage, indirect IT department costs are ____.

Accepted Answer

A) treated as general organizational costs and not charged to other departments 
B) allocated to other departments based on user-oriented activity 
C) varied from month to month, depending on a department's use of resources 
D) divided among all departments in the form of a set monthly charge 
A) treated as general organizational costs and not charged to other departments 
B) allocated to other departments based on user-oriented activity 
C) varied from month to month, depending on a department's use of resources 
D) divided among all departments in the form of a set monthly charge

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

If a spreadsheet program includes a built-in present value function, the program inputs the formula and users input all of the following EXCEPT the ____.

Accepted Answer

A) amount 
B) discount rate 
C) number of time periods 
D) net present value 
A) amount 
B) discount rate 
C) number of time periods 
D) net present value

Question 4

Operational costs are incurred only once at the time the system is developed or acquired.

Accepted Answer

A) True 
 B)False

Question 5

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 are calculated.

Accepted Answer

A) True 
 B)False

Question 6

With a fixed charge method, indirect IT department costs are ____.

Accepted Answer

A) treated as general organizational costs and not charged to other departments 
B) allocated to other departments based on user-oriented activity 
C) varied from month to month, depending on a department's use of resources 
D) divided among all departments in the form of a set monthly charge 
A) treated as general organizational costs and not charged to other departments 
B) allocated to other departments based on user-oriented activity 
C) varied from month to month, depending on a department's use of resources 
D) divided among all departments in the form of a set monthly charge

Question 7

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 8

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 9

The ____________________ of a project is the total present value of the benefits minus the total present value of the costs.

Accepted Answer

net present value (N

Question 10

The ROI (return on investment) technique recognizes the timing of costs and benefits.

Accepted Answer

A) True 
 B)False

Question 11

____________________ is the process of comparing the anticipated costs of an information system to the anticipated benefits.

Accepted Answer

Cost-benef

Question 12

Tangible costs are costs whose dollar values cannot be calculated easily.

Accepted Answer

A) True 
 B)False

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

Direct costs are costs that can be associated with the development of a specific system.

Accepted Answer

A) True 
 B)False

Question 15

The ____ 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) past value 
B) present value 
C) probable value 
D) projected value 
A) past value 
B) present value 
C) probable value 
D) projected value

Question 16

With a variable charge method based on volume, indirect IT department costs are ____.

Accepted Answer

A) treated as general organizational costs and not charged to other departments 
B) allocated to other departments based on user-oriented activity 
C) varied from month to month, depending on a department's use of resources 
D) divided among all departments in the form of a set monthly charge 
A) treated as general organizational costs and not charged to other departments 
B) allocated to other departments based on user-oriented activity 
C) varied from month to month, depending on a department's use of resources 
D) divided among all departments in the form of a set monthly charge

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

To help perform present value analysis, adjustment factors for various interest rates and numbers of years are calculated and printed in tables called ____________________.

Accepted Answer

present va

Question 19

Intangible costs are costs for which a specific dollar value can be assigned.

Accepted Answer

A) True 
 B)False

Question 20

Developmental costs are incurred after a system is implemented and continue while the system is in use.

Accepted Answer

A) True 
 B)False

With a variable charge method based on resource usage, indirect IT department costs are ____.

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

If a spreadsheet program includes a built-in present value function, the program inputs the formula and users input all of the following EXCEPT the ____.

Operational costs are incurred only once at the time the system is developed or acquired.

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 are calculated.

With a fixed charge method, indirect IT department costs are ____.

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

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.

The ____________________ of a project is the total present value of the benefits minus the total present value of the costs.

The ROI (return on investment) technique recognizes the timing of costs and benefits.

____________________ is the process of comparing the anticipated costs of an information system to the anticipated benefits.

Tangible costs are costs whose dollar values cannot be calculated easily.

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

Direct costs are costs that can be associated with the development of a specific system.

The ____ 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.

With a variable charge method based on volume, indirect IT department costs are ____.

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

To help perform present value analysis, adjustment factors for various interest rates and numbers of years are calculated and printed in tables called ____________________.

Intangible costs are costs for which a specific dollar value can be assigned.

Developmental costs are incurred after a system is implemented and continue while the system is in use.

Introduction to Systems Analysis and Design

Analyzing the Business Case

Managing Systems Projects

Requirements Modeling

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

With a variable charge method based on resource usage, indirect IT department costs are ____.

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

If a spreadsheet program includes a built-in present value function, the program inputs the formula and users input all of the following EXCEPT the ____.

Operational costs are incurred only once at the time the system is developed or acquired.

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 are calculated.

With a fixed charge method, indirect IT department costs are ____.

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

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.

The ____________________ of a project is the total present value of the benefits minus the total present value of the costs.

The ROI (return on investment) technique recognizes the timing of costs and benefits.

____________________ is the process of comparing the anticipated costs of an information system to the anticipated benefits.

Tangible costs are costs whose dollar values cannot be calculated easily.

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

Direct costs are costs that can be associated with the development of a specific system.

The ____ 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.

With a variable charge method based on volume, indirect IT department costs are ____.

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

To help perform present value analysis, adjustment factors for various interest rates and numbers of years are calculated and printed in tables called ____________________.

Intangible costs are costs for which a specific dollar value can be assigned.

Developmental costs are incurred after a system is implemented and continue while the system is in use.

Introduction to Systems Analysis and Design

Analyzing the Business Case

Managing Systems Projects

Requirements Modeling

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