Deck 4: Systems Planning and Selection

Question 1

Economic feasibility is a process of identifying the financial benefits and costs associated with a development project.

Answer 1

True

Question 2

Site preparation is an example of a one-time cost.

Answer 2

True

Question 3

Systems analysis is the first phase of the systems development life cycle.

Answer 3

False

Question 4

The major outcomes and deliverables from project initiation and planning are the baseline project plan and the project scope statement.

Question 5

The project charter reflects the best estimate of the project's scope, benefits, costs, risks, and resource requirements, given the current understanding of the project.

Question 6

Increased flexibility is an example of an intangible benefit.

Question 7

Project initiation focuses on activities that will help organize a team to conduct project planning.

Question 8

A schedule of specific IS development projects is the primary deliverable from the project identification and selection phase.

Question 9

To maintain consistency, the classification and ranking of projects should only be performed by top management or a steering committee.

Question 10

The development group identifies projects based on the ease with which existing hardware and systems will integrate with the proposed project.

Question 11

Proper and insightful project initiation and planning, including determining project scope and identifying project activities, can reduce the time needed to complete later project phases, including systems analysis.

Question 12

Project planning focuses on defining clear, discrete tasks and the work needed to complete each task.

Question 13

When comparing alternative methods for making information systems identification and selection decisions, top management's selection decisions often involve a small system size and have a cross-functional focus.

Question 14

The objective of project identification and selection is to transform a vague system request document into a tangible project description.

Question 15

The baseline project plan (BPP) is the primary deliverable from the project identification and selection phase.

Question 16

The criteria used to evaluate projects will vary by organization.

Question 17

Due to the principle of incremental commitment, a selected project will result in a working system.

Question 18

Projects identified by top management have a cross-functional focus.

Question 19

Opening new markets and increasing sales opportunities are both examples of tangible benefit.

Question 20

Requirements structuring is the first activity of the systems planning and selection phase.

Question 21

All information collected during project initiation and planning is collected and organized into a document called the baseline project plan.

Question 22

Generally speaking, legal and contractual feasibility is a greater consideration if your organization has historically used an outside organization for specific systems or services that you now are considering handling yourself.

Question 23

If the net present value (NPV) of all costs is $100,000 and the NPV of all benefits is $170,000, then the ROI would be 35 percent.

Question 24

Using a discount rate of 10 percent, the present value of a $2,500 benefit received five years from now is $1,552.30.

Question 25

Variable costs are costs resulting from the ongoing evolution and use of a system.

Question 26

Using a discount rate of 14 percent, the present value of a $10,000 benefit received five years from now is $5,500.49.

Question 27

Referencing a walkthrough, the maintenance oracle ensures that the work product adheres to organizational technical standards.

Question 28

Because many projects may be competing for the same investment dollars and may have different useful life expectancies, all costs and benefits must be viewed in relation to their present rather than future value when comparing investment options.

Question 29

The objective of return on investment (ROI) analysis is to discover at what point cumulative benefits equal costs.

Question 30

The construction of an information system can have political ramifications.

Question 31

The goal of operational feasibility is to understand the degree to which a proposed system will likely solve the business problems or take advantage of opportunities.

Question 32

The time value of money (TVM) compares present cash outlays to future expected returns.

Question 33

A walkthrough is a peer group review of any product created during the systems development process.

Question 34

Fulfillment feasibility is the process of examining the likelihood that the project will attain its desired objectives.

Question 35

Most techniques for analyzing economic feasibility employ the time value of money concept.

Question 36

Referencing a walkthrough, the user makes sure that the work product meets the needs of the project's customers.

Question 37

Referencing a walkthrough, the coordinator reviews the work product in terms of future maintenance activities.

Question 38

The Explanation of Services is a document prepared for the customer that describes what the project will deliver and outlines generally at a high level all work required to complete the project.

Question 39

Using a discount rate of 12 percent, the present value of a $50,500 benefit received two years from now is $40,258.29.

Question 40

Referencing the Management Issues section of the baseline project plan, the communication plan provides a description of the team member roles and reporting relationships.

Question 41

Which of the following alternative methods for making information systems identification and selection decisions has as its focus integration with existing systems?

A) Development group
B) User department
C) Steering committee
D) Top management
E) End user

Question 42

Research has found that projects identified by top management more often:

A) have a narrow, tactical focus.
B) reflect diversity and have a cross-functional focus.
C) have a strategic, organizational focus.
D) will integrate easily with existing hardware and systems.
E) have a very low systems development priority.

Question 43

The objective of the project planning process is the development of:

A) a Baseline Project Plan and Project Scope Statement.
B) a Systems Service Request.
C) entity relationship diagrams.
D) corporate strategic plan.
E) an information systems plan.

Question 44

If the project team and organizational officials reassess the project after each subsequent SDLC phase to determine if the business conditions have changed or if a more detailed understanding of a system's costs, benefits, and risks suggest that the project is not as worthy as previously thought, they are:

A) adhering to the incremental commitment principle.
B) overly cautious.
C) using a CASE methodology.
D) adhering to a bottom-up commitment principle.
E) using a staged approach to systems development.

Question 45

The primary deliverable from the project identification and selection phase is:

A) a context data flow diagram.
B) at least three substantively different system design strategies for building the replacement information system.
C) the development of a new version of the software and new versions of all design documents.
D) an entity relationship diagram.
E) a schedule of specific IS development projects.

Question 46

A department head deciding which project requests to submit is an example of:

A) a preliminary investigation of the system problem or opportunity.
B) identifying potential development projects.
C) requirements determination.
D) generating alternative initial designs.
E) requirements structuring.

Question 47

Which of the following is a project initiation activity?

A) Developing a preliminary schedule
B) Setting a baseline project plan
C) Determining project standards and procedures
D) Establishing a relationship with the customer
E) Developing a communication plan

Question 48

Which of the following is one of the three primary activities associated with identifying and selecting IS development projects?

A) Preliminary investigation of the system problem or opportunity
B) Identification of potential development projects
C) Requirements determination
D) Generate alternative initial designs
E) Requirements structuring

Question 49

The extent to which the project is viewed as improving profits, customer service, etc., and the duration of these benefits best defines which of the following evaluation criteria?

A) Potential benefits
B) Resource availability
C) Technical difficulty or risks
D) Strategic alignment
E) Value chain analysis

Question 50

Potential development projects with a cross-functional focus are often identified by:

A) a steering committee.
B) top management.
C) a senior IS manager.
D) individual departments.
E) customers.

Question 51

Which of the following alternative methods for making information systems identification and selection decisions has the highest associated cost?

A) Development group
B) User department
C) Steering committee
D) Top management
E) End user

Question 52

The systems planning and selection process for an Internet-based electronic commerce application is no different than the process followed for other applications.

Question 53

Activities designed to assist in organizing a team to conduct project planning is the focus of:

A) project development.
B) project identification and selection.
C) project initiation.
D) analysis.
E) implementation and operation.

Question 54

Which of the following is NOT a project initiation activity?

A) Establishing management procedures
B) Dividing the project into manageable tasks
C) Establishing a relationship with the customer
D) Establishing the project initiation team
E) Establishing the project initiation plan

Question 55

Which of the following possible project sources most often reflects the broader needs of the organization?

A) User department
B) Development group
C) IS manager
D) Top management
E) Production manager

Question 56

Research has found that projects identified by individual departments or business units most often:

A) have a narrow, tactical focus.
B) reflect diversity and have a cross-functional focus.
C) have a strategic, organizational focus.
D) will integrate easily with existing hardware and systems.
E) have a very high systems development priority.

Question 57

The extent to which the project is viewed as helping the organization achieve its strategic objectives and long-term goals describes:

A) potential benefits.
B) resource availability.
C) technical difficulty or risks.
D) strategic alignment.
E) value chain analysis.

Question 58

Analyzing an organization's activities to determine where value is added to products and/or services and the costs incurred best describes:

A) affinity clustering.
B) business process reengineering.
C) value chain analysis.
D) resource availability.
E) technical difficulty.

Question 59

As a rule of thumb estimate, what percentage of the entire development effort should be devoted to the project initiation and planning process?

A) Between 10 and 20 percent
B) Less than 5 percent
C) Less than 10 percent
D) Between 20 and 30 percent
E) Over 50 percent

Question 60

The first phase of the systems development life cycle is:

A) systems planning and selection.
B) systems study.
C) systems analysis.
D) systems design.
E) systems implementation and operation.

Question 61

Which of the following is a project planning activity?

A) Establishing management procedures
B) Establishing a relationship with the customer
C) Estimating resources and creating a resource plan
D) Establishing the project management environment and project workbook
E) Establishing the project initiation plan

Question 62

Which of the following is NOT a project planning activity?

A) Determining project standards and procedures
B) Establishing management procedures
C) Developing a Statement of Work
D) Dividing the project into manageable tasks
E) Developing a communication plan

Question 63

A savings of $5,000 resulting from data entry error reductions would most likely be classified as a(n):

A) intangible benefit.
B) qualitative benefit.
C) tangible benefit.
D) operational benefit.
E) profitable benefit.

Question 64

A major outcome and deliverable from project initiation and planning that reflects the best estimate of the project's scope, benefits, costs, risks, and resource requirements defines the:

A) Baseline Project Plan.
B) Information Systems Plan.
C) Mission Statement.
D) Resource Requirements Statement.
E) Systems Service Request.

Question 65

A cost resulting from the ongoing evolution and use of a system best defines a(n):

A) recurring cost.
B) one-time cost.
C) incremental cost.
D) frequent cost.
E) variable cost.

Question 66

The interest rate used to compute the present value of future cash flows refers to:

A) discount rate.
B) investment rate.
C) transfer rate.
D) future cash flow rate.
E) valuation rate.

Question 67

The Baseline Project Plan does not:

A) contain all information collected and analyzed during project initiation and planning.
B) specify detailed project activities for the next life cycle phase, analysis, and less detail for subsequent project phases.
C) include being used by the project selection committee to help decide if the project should be accepted, redirected, or canceled.
D) reflect the best estimate of the project's scope, benefits, costs, risks, and resource requirements given the current understanding of the project.
E) include the database metadata.

Question 68

A cost associated with project start-up refers to a(n):

A) recurring cost.
B) one-time cost.
C) incremental cost.
D) infrequent cost.
E) consumable cost.

Question 69

A cost associated with an information system that can be measured in dollars and with certainty best describes:

A) economic cost.
B) tangible cost.
C) intangible cost.
D) one-time cost.
E) measurable cost.

Question 70

The reduction of waste creation is an example of a(n):

A) intangible benefit.
B) qualitative benefit.
C) tangible benefit.
D) operational benefit.
E) profitable benefit.

Question 71

A benefit derived from the creation of an information system that can be measured in dollars and with certainty is a(n):

A) intangible benefit.
B) qualitative benefit.
C) tangible benefit.
D) operational benefit.
E) profitable benefit.

Question 72

Which of the following would be classified as an intangible cost?

A) Hardware costs
B) Labor costs
C) Employee morale
D) Operational costs
E) Internet service setup fee

Question 73

Tangible benefits would include:

A) improved organizational planning.
B) ability to investigate more alternatives.
C) improved asset control.
D) lower transaction costs.
E) first to market.

Question 74

To identify the financial benefits and costs associated with the development project is the purpose of:

A) financial feasibility.
B) technical feasibility.
C) operational feasibility.
D) economic feasibility.
E) schedule feasibility.

Question 75

Which of the following would be classified as a tangible cost?

A) Loss of customer goodwill
B) Cost of hardware
C) Employee morale
D) Operational inefficiency
E) Not all customers use the Internet.

Question 76

A cost associated with an information system that cannot be easily measured in terms of dollars or with certainty refers to a(n):

A) economic cost.
B) tangible cost.
C) intangible cost.
D) one-time cost.
E) nonconsumable cost.

Question 77

Cost reduction and avoidance, error reduction, and increased flexibility are examples of:

A) intangible benefits.
B) qualitative benefits.
C) tangible benefits.
D) legal and contractual benefits.
E) profitable benefits.

Question 78

Application software maintenance, new software and hardware leases, and incremental communications are examples of:

A) recurring costs.
B) one-time costs.
C) incremental costs.
D) frequent costs.
E) consumable costs.

Question 79

A major outcome and deliverable from the project initiation and planning phase that contains an estimate of the project's scope, benefits, costs, risks, and resource requirements best defines:

A) Baseline Project Plan.
B) Information Systems Plan.
C) Business Case.
D) Statement of Work.
E) System Service Request.

Question 80

The concept of comparing present cash outlays to future expected returns best defines:

A) cost/benefit analysis.
B) internal rate of return.
C) time value of money.
D) investment return analysis.
E) monetary futures analysis.