Modern Systems Analysis And Design 6th Edition By Jeffry E.Hoofer – Test Bank

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Modern Systems Analysis and Design, 6e (Hoffer, et al.)

Chapter 5  Initiating and Planning Systems Development Projects

 

1) Proper and insightful project planning, including determining project scope as well as identifying project activities, can easily reduce time in later project phases.

Answer:  TRUE

Diff: 2             Page Ref: 124

 

2) The objective of project initiation and planning is to transform a vague system request document into a tangible project description.

Answer:  TRUE

Diff: 3             Page Ref: 124

 

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

Answer:  TRUE

Diff: 2             Page Ref: 125

 

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

Answer:  TRUE

Diff: 2             Page Ref: 125

 

5) The objective of the project planning process is the development of a Baseline Project Plan and a Statement of Work.

Answer:  FALSE

Diff: 2             Page Ref: 125

 

6) The Project Scope Statement clearly outlines the objectives and constraints of the project for the development group.

Answer:  FALSE

Diff: 2             Page Ref: 126

 

7) The major outcomes and deliverables from project initiation and planning are the Baseline Project Plan and the Project Scope Statement.

Answer:  TRUE

Diff: 2             Page Ref: 126

 

8) The Systems Service Request reflects the best estimate of the project’s scope, benefits, costs, risks, and resource requirements, given the current understanding of the project.

Answer:  FALSE

Diff: 2             Page Ref: 126

 

9) The Explanation of Services is a short document prepared for the customer that describes what the project will deliver and outlines all work required to complete the project.

Answer:  FALSE

Diff: 2             Page Ref: 126

10) The Statement of Work is a document prepared for the customer during project initiation and planning that describes what the project will deliver and outlines generally at a high level all work required to complete the project.

Answer:  FALSE

Diff: 2             Page Ref: 126

 

11) The Project Scope Statement can be used as the basis of a formal contractual agreement outlining firm deadlines, costs, and specifications.

Answer:  TRUE

Diff: 1             Page Ref: 126

 

12) Assessing project feasibility is a required activity for all information systems projects.

Answer:  TRUE

Diff: 1             Page Ref: 127

 

13) The culmination of the feasibility analyses form the business case that justifies the expenditure of resources on the project.

Answer:  TRUE

Diff: 2             Page Ref: 127

 

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

Answer:  TRUE

Diff: 1             Page Ref: 127

 

15) During project initiation and planning, you should precisely define all benefits and costs related to a particular project.

Answer:  FALSE

Diff: 2             Page Ref: 127

 

16) Opening new markets and increasing sales opportunities is a tangible benefit.

Answer:  TRUE

Diff: 2             Page Ref: 129

 

17) Increased flexibility is an intangible benefit.

Answer:  FALSE

Diff: 2             Page Ref: 130

 

18) Improvement of management planning and control is a tangible benefit.

Answer:  TRUE

Diff: 2             Page Ref: 129

 

19) Competitive necessity, more timely information, and improved organizational planning are intangible benefits.

Answer:  TRUE

Diff: 2             Page Ref: 130

 

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

Answer:  TRUE

Diff: 1             Page Ref: 130

21) During project initiation and planning, potential tangible benefits may have to be considered intangible.

Answer:  TRUE

Diff: 2             Page Ref: 130

 

22) Disruption to the rest of the organization is an example of a procurement cost.

Answer:  FALSE

Diff: 3             Page Ref: 131

 

23) Management, operation, and planning personnel are examples of start-up costs.

Answer:  FALSE

Diff: 3             Page Ref: 131

 

24) Intangible benefits are benefits associated with project start-up, development, or system start-up.

Answer:  FALSE

Diff: 2             Page Ref: 130

 

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

Answer:  FALSE

Diff: 2             Page Ref: 131

 

26) Fixed costs are costs that are billed or incurred at a regular interval and usually at a fixed rate.

Answer:  TRUE

Diff: 1             Page Ref: 131

 

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

Answer:  TRUE

Diff: 2             Page Ref: 132

 

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.

Answer:  TRUE

Diff: 3             Page Ref: 132

 

29) Using a discount rate of 10%, the present value of a $2,500 benefit received 5 years from now is $1,552.30.

Answer:  TRUE

Diff: 2             Page Ref: 133

 

 

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

Answer:  FALSE

Diff: 2             Page Ref: 133

 

31) Using a discount rate of 12%, the present value of a $50,500 benefit received 2 years from now is $39,859.69.

Answer:  FALSE

Diff: 2             Page Ref: 133

32) The objective of ROI analysis is to discover at what point cumulative benefits equal costs.

Answer:  FALSE

Diff: 2             Page Ref: 133

 

33) If the NPV of all costs is $100,000 and the NPV of all benefits is $170,000, then the ROI would be 35%.

Answer:  FALSE

Diff: 2             Page Ref: 133

 

34) If the NPV of all benefits is $150,000 and the NPV of all costs is $125,000, then the ROI is 15%.

Answer:  FALSE

Diff: 2             Page Ref: 133

 

35) If the NPV of all benefits is $2,500,000 and the NPV of all costs are $1,000,000 then the ROI is 10%.

Answer:  FALSE

Diff: 2             Page Ref: 133

 

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

Answer:  TRUE

Diff: 2             Page Ref: 134

 

37) Fulfillment feasibility is the process of assessing the development organization’s ability to construct a proposed system.

Answer:  FALSE

Diff: 2             Page Ref: 135

 

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

Answer:  TRUE

Diff: 2             Page Ref: 138

 

39) 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.

Answer:  TRUE

Diff: 2             Page Ref: 139

40) The construction of an information system can have political ramifications.

Answer:  TRUE

Diff: 1             Page Ref: 139

 

41) All information collected during project initiation and planning is collected and organized into a document called the Baseline Project Plan.

Answer:  TRUE

Diff: 2             Page Ref: 140

 

42) Referencing the Management Issues section of the Baseline Project Plan, the communication plan provides a description of the team member roles and reporting relationships.

Answer:  FALSE

Diff: 3             Page Ref: 141

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

Answer:  TRUE

Diff: 2             Page Ref: 145

 

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

Answer:  FALSE

Diff: 2             Page Ref: 145

 

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

Answer:  FALSE

Diff: 3             Page Ref: 145

 

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

Answer:  TRUE

Diff: 1             Page Ref: 145

 

47) The project initiation and planning process for an Internet-based electronic commerce application is similar to the process followed for other applications.

Answer:  TRUE

Diff: 2             Page Ref: 150

 

48) Walkthroughs are a common occurrence in most system development groups.

Answer:  TRUE

Diff: 2             Page Ref: 146

 

49) The least amount of project planning effort is typically expended on the feasibility assessment activities.

Answer:  FALSE

Diff: 2             Page Ref: 143

 

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

  1. A) between 10 and 20 percent
  2. B) less than 5 percent
  3. C) less than 10 percent
  4. D) between 20 and 30 percent

Answer:  A

Diff: 2             Page Ref: 124

 

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

  1. A) project planning
  2. B) project identification and selection
  3. C) project initiation
  4. D) analysis

Answer:  C

Diff: 2             Page Ref: 125

52) How is project planning distinct from general information systems planning?

  1. A) General information systems planning focuses on assessing the information systems needs of the entire organization.
  2. B) Project planning focuses on assessing the information systems needs of the entire organization.
  3. C) General information systems planning focuses on defining clear, discrete activities and the work needed to complete each activity within a single project.
  4. D) Project planning focuses on defining discrete activities needed to complete all projects.

Answer:  A

Diff: 2             Page Ref: 125

 

53) Which of the following is not an element of project initiation?

  1. A) establishing management procedures
  2. B) dividing the project into manageable tasks
  3. C) establishing a relationship with the customer
  4. D) establishing the project initiation team

Answer:  B

Diff: 2             Page Ref: 126

 

54) The objective of the project planning process is:

  1. A) the development of a Baseline Project Plan and Project Scope Statement
  2. B) the development of a Systems Service Request
  3. C) the development of entity relationship diagrams
  4. D) the development of transitional operations plans

Answer:  A

Diff: 2             Page Ref: 126

 

 

55) Which of the following is an element of project planning?

  1. A) establishing management procedures
  2. B) establishing a relationship with the customer
  3. C) estimating resources and creating a resource plan
  4. D) establishing the project management environment and project workbook

Answer:  B

Diff: 2             Page Ref: 126

 

56) The Baseline Project Plan:

  1. A) contains all information collected and analyzed during project initiation and planning
  2. B) specifies detailed project activities for the next life cycle phase, analysis, and less detail for subsequent project phases
  3. C) is used by the project selection committee to help decide if the project should be accepted, redirected, or canceled
  4. D) all of the above

Answer:  D

Diff: 2             Page Ref: 126

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

  1. A) Baseline Project Plan
  2. B) Information Systems Plan
  3. C) Mission Statement
  4. D) Statement of Work

Answer:  A

Diff: 2             Page Ref: 126

 

58) The justification for an information system, presented in terms of the tangible and intangible economic benefits and costs and the technical and organizational feasibility of the proposed system best defines:

  1. A) Baseline Project Plan
  2. B) Information Systems Plan
  3. C) Business Case
  4. D) Statement of Work

Answer:  C

Diff: 2             Page Ref: 126

 

59) The Project Scope Statement:

  1. A) is a short document prepared for the customer that describes what the project will deliver and outlines all work required to complete the project
  2. B) is useful for ensuring that both you and your customer gain a common understanding of the project
  3. C) is a very easy document to create because it typically consists of a high-level summary of the BPP information
  4. D) all of the above

Answer:  D

Diff: 2             Page Ref: 126

60) A document prepared for the customer during project initiation and planning that describes what the project will deliver and outlines generally at a high level all work required to complete the project is the:

  1. A) Information Systems Plan
  2. B) Project Scope Statement
  3. C) Mission Statement
  4. D) Baseline Project Plan

Answer:  B

Diff: 2             Page Ref: 126

 

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

  1. A) economic feasibility
  2. B) technical feasibility
  3. C) operational feasibility
  4. D) schedule feasibility

Answer:  A

Diff: 2             Page Ref: 127

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

  1. A) intangible benefits
  2. B) qualitative benefits
  3. C) tangible benefits
  4. D) legal and contractual benefits

Answer:  C

Diff: 2             Page Ref: 129

 

63) A savings of $3,000 resulting from a data entry error correction would most likely be classified as a(n):

  1. A) intangible benefit
  2. B) qualitative benefit
  3. C) tangible benefit
  4. D) operational benefit

Answer:  C

Diff: 2             Page Ref: 129

 

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

  1. A) intangible benefit
  2. B) qualitative benefit
  3. C) tangible benefit
  4. D) operational benefit

Answer:  C

Diff: 2             Page Ref: 129

 

 

65) Tangible benefits would include:

  1. A) improved organizational planning
  2. B) ability to investigate more alternatives
  3. C) improved asset control utilization
  4. D) lower transaction costs

Answer:  D

Diff: 2             Page Ref: 129

 

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

  1. A) intangible benefit
  2. B) qualitative benefit
  3. C) tangible benefit
  4. D) operational benefit

Answer:  A

Diff: 2             Page Ref: 130

 

67) A cost associated with an information system that can be measured in dollars and with certainty is referred to as a(n):

  1. A) economic cost
  2. B) tangible cost
  3. C) intangible cost
  4. D) one-time cost

Answer:  B

Diff: 2             Page Ref: 129

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

  1. A) loss of customer goodwill
  2. B) cost of hardware
  3. C) employee morale
  4. D) operational inefficiency

Answer:  B

Diff: 2             Page Ref: 129

 

69) Capital costs, management and staff time, and consulting costs are examples of:

  1. A) project-related costs
  2. B) operating costs
  3. C) start-up costs
  4. D) procurement costs

Answer:  D

Diff: 3             Page Ref: 131

 

 

70) Infrastructure replacement/improvements, system maintenance costs, and user training and support are examples of:

  1. A) project-related costs
  2. B) operating costs
  3. C) start-up costs
  4. D) procurement costs

Answer:  B

Diff: 3             Page Ref: 131

 

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

  1. A) hardware costs
  2. B) labor costs
  3. C) employee morale
  4. D) operational costs

Answer:  C

Diff: 2             Page Ref: 130

 

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

  1. A) economic cost
  2. B) tangible cost
  3. C) intangible cost
  4. D) one-time cost

Answer:  C

Diff: 2             Page Ref: 130

 

73) A cost associated with project start-up and development or system start-up refers to a(n):

  1. A) recurring cost
  2. B) one-time cost
  3. C) incremental cost
  4. D) infrequent cost

Answer:  B

Diff: 2             Page Ref: 130

74) A cost resulting from the ongoing evolution and use of a system refers to a(n):

  1. A) recurring cost
  2. B) one-time cost
  3. C) incremental cost
  4. D) frequent cost

Answer:  A

Diff: 2             Page Ref: 131

 

 

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

  1. A) recurring costs
  2. B) one-time costs
  3. C) incremental costs
  4. D) frequent costs

Answer:  A

Diff: 2             Page Ref: 131

 

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

  1. A) cost/benefit analysis
  2. B) internal rate of return
  3. C) time value of money
  4. D) investment return analysis

Answer:  C

Diff: 2             Page Ref: 132

 

77) The rate of return used to compute the present value of future cash flows refers to:

  1. A) discount rate
  2. B) investment rate
  3. C) transfer rate
  4. D) future cash flow rate

Answer:  A

Diff: 2             Page Ref: 133

 

78) The current value of a future cash flow is referred to as its:

  1. A) future value
  2. B) present value
  3. C) investment value
  4. D) discount rate

Answer:  B

Diff: 2             Page Ref: 133

 

79) The analysis technique that uses a discount rate determined from the company’s cost of capital to establish the present value of a project is commonly called:

  1. A) return on investment (ROI)
  2. B) break-even analysis (BEA)
  3. C) net present value (NPV)
  4. D) future value (FV)

Answer:  C

Diff: 2             Page Ref: 133

 

80) The ratio of the net cash receipts of the project divided by the cash outlays of the project, enabling tradeoff analysis to be made between competing projects is often referred to as:

  1. A) return on investment (ROI)
  2. B) break-even analysis (BEA)
  3. C) net present value (NPV)
  4. D) future value (FV)

Answer:  A

Diff: 2             Page Ref: 135

 

81) The analysis technique that finds the amount of time required for the cumulative cash flow from a project to equal its initial and ongoing investment is referred to as:

  1. A) return on investment (ROI)
  2. B) break-even analysis (BEA)
  3. C) net present value (NPV)
  4. D) future value (FV)

Answer:  B

Diff: 2             Page Ref: 133

 

82) To gain an understanding of the organization’s ability to construct the proposed system is the purpose of:

  1. A) operational feasibility
  2. B) schedule feasibility
  3. C) technical feasibility
  4. D) political feasibility

Answer:  C

Diff: 2             Page Ref: 135

 

83) An assessment of the development group’s understanding of the possible target hardware, software, and operating environments, system size, complexity, and the group’s experience with similar systems should be included as part of:

  1. A) technical feasibility
  2. B) political feasibility
  3. C) operational feasibility
  4. D) schedule feasibility

Answer:  A

Diff: 2             Page Ref: 135

 

84) When conducting a technical risk assessment, which of the following is true?

  1. A) A project has a greater likelihood of experiencing unforeseen technical problems when the development group lacks knowledge related to some aspect of the technology environment.
  2. B) Large projects are riskier than small projects.
  3. C) Successful IS projects require active involvement and cooperation between the user and development groups.
  4. D) All of the above.

Answer:  D

Diff: 2             Page Ref: 137-138

 

85) A new system or the renovation of existing systems, user perceptions, and management commitment to the system are examples of which of the following risk factors?

  1. A) development group
  2. B) project structure
  3. C) project size
  4. D) user group

Answer:  B

Diff: 3             Page Ref: 136

 

86) The number of members on the project team, project duration, and the number of organizational departments involved in the project are examples of which of the following risk factors?

  1. A) development group
  2. B) project structure
  3. C) project size
  4. D) user group

Answer:  C

Diff: 2             Page Ref: 136

 

87) To gain an understanding of the likelihood that all potential time frame and completion date schedules can be met and that meeting these dates will be sufficient for dealing with the needs of the organization is the purpose of:

  1. A) schedule feasibility
  2. B) operational feasibility
  3. C) technical feasibility
  4. D) political feasibility

Answer:  A

Diff: 2             Page Ref: 138

 

88) The process of assessing the degree to which a proposed system solves business problems or takes advantage of business opportunities refers to:

  1. A) schedule feasibility
  2. B) operational feasibility
  3. C) technical feasibility
  4. D) political feasibility

Answer:  B

Diff: 2             Page Ref: 138

 

89) The process of assessing potential legal and contractual ramifications due to the construction of a system refers to:

  1. A) technical feasibility
  2. B) legal and contractual feasibility
  3. C) economic feasibility
  4. D) operational feasibility

Answer:  B

Diff: 2             Page Ref: 139

 

90) To gain an understanding of how key stakeholders within the organization view the proposed system is the purpose of:

  1. A) technical feasibility
  2. B) legal and contractual feasibility
  3. C) political feasibility
  4. D) operational feasibility

Answer:  C

Diff: 2             Page Ref: 139

 

91) The following are elements of project planning:

  1. A) describing the physical design statement
  2. B) describing the project scope, alternatives, and feasibility
  3. C) describing the identification of the business mission
  4. D) describing the logical design statement

Answer:  B

Diff: 2             Page Ref: 126

 

92) A peer group review of any product created during the system development process refers to:

  1. A) walkthrough
  2. B) feasibility assessment
  3. C) joint application discussion
  4. D) product evaluation

Answer:  A

Diff: 2             Page Ref: 145

 

93) At a walkthrough meeting, the person who plans the meetings and facilitates a smooth meeting process is referred to as the:

  1. A) presenter
  2. B) coordinator
  3. C) standards bearer
  4. D) maintenance oracle

Answer:  B

Diff: 2             Page Ref: 145

 

94) At a walkthrough meeting, the person (or group) who ensures that the work product meets the needs of the project’s customers is referred to as the:

  1. A) coordinator
  2. B) user
  3. C) maintenance oracle
  4. D) standards bearer

Answer:  B

Diff: 2             Page Ref: 145

 

 

95) At a walkthrough meeting, the person who ensures that the work product adheres to organizational technical standards is referred to as the:

  1. A) coordinator
  2. B) user
  3. C) maintenance oracle
  4. D) standards bearer

Answer:  D

Diff: 2             Page Ref: 145

96) At a walkthrough meeting, the person who reviews the work product in terms of future maintenance activities is referred to as the:

  1. A) coordinator
  2. B) user
  3. C) maintenance oracle
  4. D) standards bearer

Answer:  C

Diff: 2             Page Ref: 145

 

97) At walkthrough meetings, there is a need to have individuals play specific roles such as:

  1. A) operating system manager
  2. B) Presenter
  3. C) DBA
  4. D) top management

Answer:  B

Diff: 3             Page Ref: 145

 

98) Which of the following is NOT a role at a walkthrough meeting?

  1. A) coordinator
  2. B) user
  3. C) secretary
  4. D) support staff

Answer:  D

Diff: 2             Page Ref: 145

 

99) Which of the following is NOT a major section of the Baseline Project Plan?

  1. A) design issues
  2. B) introduction
  3. C) system description
  4. D) feasibility assessment

Answer:  A

Diff: 3             Page Ref: 141

 

100) A __________ is the justification for an information system, presented in terms of the tangible and intangible economic benefits and costs and the technical and organizational feasibility of the proposed system.

Answer:  business case

Diff: 2             Page Ref: 126

 

101) The __________ is the major outcome and deliverable from the project initiation and planning phase that contains the best estimate of the project’s scope, benefits, costs, risks, and resource requirements.

Answer:  Baseline Project Plan

Diff: 2             Page Ref: 126

 

102) The __________ is a document prepared for the customer during project initiation and planning that describes what the project will deliver and outlines generally at a high level all work required to complete the project.

Answer:  Project Scope Statement

Diff: 2             Page Ref: 126

103) __________ is the process of identifying the financial benefits and costs associated with a development project.

Answer:  Economic feasibility

Diff: 1             Page Ref: 127

 

104) A __________ is a benefit derived from the creation of an information system that can be measured in dollars and with certainty.

Answer:  tangible benefit

Diff: 1             Page Ref: 129

 

105) An __________ is a benefit derived from the creation of an information system that cannot be easily measured in dollars or with certainty.

Answer:  intangible benefit

Diff: 1             Page Ref: 130

 

106) A __________ is a cost associated with an information system that can be easily measured in dollars and with certainty.

Answer:  tangible cost

Diff: 1             Page Ref: 130

 

107) An __________ is a cost associated with an information system that cannot be easily measured in terms of dollars or with certainty.

Answer:  intangible cost

Diff: 1             Page Ref: 130

 

108) __________ are costs associated with project start-up and development, or system start-up.

Answer:  One-time costs

Diff: 2             Page Ref: 130

 

109) __________ are costs resulting from the ongoing evolution and use of a system.

Answer:  Recurring costs

Diff: 2             Page Ref: 131

 

 

110) The __________ is the concept of comparing present cash outlays to future expected returns.

Answer:  time value of money

Diff: 2             Page Ref: 132

 

111) The __________ is the rate of return used to compute the present value of future cash flows.

Answer:  discount rate

Diff: 2             Page Ref: 133

 

112) __________ is the current value of a future cash flow.

Answer:  Present value

Diff: 2             Page Ref: 133

 

113) __________ finds the amount of time required for the cumulative cash flow from a project to equal its initial and ongoing investment.

Answer:  Break-even analysis

Diff: 2             Page Ref: 133

114) __________ is the ratio of the net cash receipts of the project divided by the cash outlays of the project.

Answer:  Return on investment

Diff: 3             Page Ref: 133

 

115) __________ uses a discount rate determined from the company’s cost of capital to establish the present value of the project.

Answer:  Net present value

Diff: 2             Page Ref: 133

 

116) __________ is the process of assessing the development organization’s ability to construct a proposed system.

Answer:  Technical feasibility

Diff: 2             Page Ref: 135

 

117) __________ is the process of assessing the degree to which a proposed system solves business problems or takes advantage of business opportunities.

Answer:  Operational feasibility

Diff: 2             Page Ref: 138

 

118) __________ is the process of assessing the degree to which the potential time frame and completion dates for all major activities within a project meet organizational deadlines and constraints for affecting change.

Answer:  Schedule feasibility

Diff: 2             Page Ref: 138

 

 

119) __________ is the process of assessing potential legal and contractual ramifications due to the construction of a system.

Answer:  Legal and contractual feasibility

Diff: 1             Page Ref: 139

 

120) __________ is the process of evaluating how key stakeholders within the organization view the proposed system.

Answer:  Political feasibility

Diff: 2             Page Ref: 138

 

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

Answer:  walkthrough

Diff: 2             Page Ref: 145

 

122) Referencing a walkthrough meeting, the __________ plans the meeting and facilitates a smooth meeting process.

Answer:  coordinator

Diff: 3             Page Ref: 145

 

123) Referencing a walkthrough meeting, the __________ ensures that the work product adheres to organizational technical standards.

Answer:  standards bearer

Diff: 3             Page Ref: 145

124) Referencing a walkthrough meeting, the __________, reviews the work product in terms of future maintenance activities.

Answer:  maintenance oracle

Diff: 3             Page Ref: 145

 

 

Match each of the following terms with its definition.

  1. economic feasibility
  2. legal and contractual feasibility
  3. operational feasibility
  4. political feasibility
  5. schedule feasibility
  6. technical feasibility

 

125) A process of identifying the financial benefits and costs associated with a development project.

Answer:  a

Diff: 2             Page Ref: 127

 

126) The process of assessing the degree to which the potential time frame and completion dates for all major activities within a project meet organizational deadlines and constraints for affecting change.

Answer:  e

Diff: 2             Page Ref: 138

 

127) The process of evaluating how key stakeholders within the organization view the proposed system.

Answer:  d

Diff: 2             Page Ref: 139

 

128) The process of assessing the degree to which a proposed system solves business problems or takes advantage of business opportunities.

Answer:  c

Diff: 2             Page Ref: 138

 

129) The process of assessing potential legal and contractual ramifications due to the construction of a system.

Answer:  b

Diff: 2             Page Ref: 139

 

130) A process of assessing the development organization’s ability to construct a proposed system.

Answer:  f

Diff: 2             Page Ref: 135

 

Match each of the following terms with its definition.

  1. intangible benefit
  2. intangible cost
  3. one-time cost
  4. recurring cost
  5. tangible benefit
  6. tangible cost

 

131) A cost associated with an information system that can be measured in dollars and with certainty.

Answer:  f

Diff: 2             Page Ref: 130

 

132) A benefit derived from the creation of an information system that can be measured in dollars and with certainty.

Answer:  e

Diff: 2             Page Ref: 129

 

133) A cost resulting from the ongoing evolution and use of a system.

Answer:  d

Diff: 2             Page Ref: 131

 

134) A cost associated with project start-up and development, or system start-up.

Answer:  c

Diff: 2             Page Ref: 130

 

135) A cost associated with an information system that cannot be easily measured in terms of dollars or with certainty.

Answer:  b

Diff: 2             Page Ref: 130

 

136) A benefit derived from the creation of an information system that cannot be easily measured in dollars or with certainty.

Answer:  a

Diff: 2             Page Ref: 130

 

Match each of the following terms with its definition.

  1. Baseline Project Plan
  2. discount rate
  3. economic feasibility
  4. intangible benefit
  5. intangible cost
  6. legal and contractual feasibility
  7. operational feasibility
  8. one-time cost
  9. political feasibility
  10. present value
  11. recurring cost
  12. schedule feasibility
  13. Project Scope Statement
  14. tangible benefit
  15. tangible cost
  16. technical feasibility
  17. walkthrough

 

137) The rate of return used to compute the present value of future cash flows.

Answer:  b

Diff: 2             Page Ref: 133

 

138) A major outcome and deliverable from the project initiation and planning phase that contains the best estimate of a project’s scope, benefits, costs, risks, and resource requirements.

Answer:  a

Diff: 2             Page Ref: 126

 

139) A peer group review of any product created during the system development process.

Answer:  q

Diff: 2             Page Ref: 145

 

140) The current value of a future cash flow.

Answer:  j

Diff: 2             Page Ref: 133

 

141) A cost associated with an information system that can be measured in dollars and with certainty.

Answer:  o

Diff: 2             Page Ref: 130

 

142) A benefit derived from the creation of an information system that can be measured in dollars and with certainty.

Answer:  n

Diff: 2             Page Ref: 129

 

 

143) A cost resulting from the ongoing evolution and use of a system.

Answer:  k

Diff: 2             Page Ref: 131

144) A cost associated with project startup and development or system startup.

Answer:  h

Diff: 2             Page Ref: 130

 

145) A cost associated with an information system that cannot be easily measured in terms of dollars or with certainty.

Answer:  e

Diff: 2             Page Ref: 130

 

146) A benefit derived from the creation of an information system that cannot be easily measured in dollars or with certainty.

Answer:  d

Diff: 2             Page Ref: 130

 

147) A document prepared for the customer during project initiation and planning that describes what the project will deliver and outlines generally at a high level all work required to complete the project.

Answer:  m

Diff: 2             Page Ref: 126

 

148) A process of identifying the financial benefits and costs associated with a development project.

Answer:  c

Diff: 2             Page Ref: 127

 

149) The process of assessing the degree to which the potential time frame and completion dates for all major activities within a project meet organizational deadlines and constraints for affecting change.

Answer:  l

Diff: 2             Page Ref: 138

 

150) The process of evaluating how key stakeholders within the organization view the proposed system.

Answer:  i

Diff: 2             Page Ref: 139

 

151) The process of assessing the degree to which a proposed system solves business problems or takes advantage of business opportunities.

Answer:  g

Diff: 2             Page Ref: 138

 

 

152) The process of assessing potential legal and contractual ramifications due to the construction of a system.

Answer:  f

Diff: 2             Page Ref: 139

 

153) A process of assessing the development organization’s ability to construct a proposed system.

Answer:  p

Diff: 2             Page Ref: 135

For each of the following walkthrough roles, match it with its description.

  1. coordinator
  2. maintenance oracle
  3. presenter
  4. secretary
  5. standards bearer
  6. user

 

154) This person reviews the work product in terms of future maintenance activities.

Answer:  b

Diff: 2             Page Ref: 145

 

155) This person ensures that the work product adheres to organizational standards.

Answer:  e

Diff: 2             Page Ref: 145

 

156) This person plans the meeting and facilitates a smooth meeting process.

Answer:  a

Diff: 2             Page Ref: 145

 

157) This person describes the work product to the group.

Answer:  c

Diff: 2             Page Ref: 145

 

158) This person ensures that the work product meets the needs of the project’s customers.

Answer:  f

Diff: 2             Page Ref: 145

 

159) This person takes notes and records decisions or recommendations made by the group.

Answer:  d

Diff: 2             Page Ref: 145

 

 

Match each of the following feasibility criteria with its purpose.

  1. economic
  2. legal and contractual
  3. operational
  4. political
  5. schedule
  6. technical

 

160) To gain an understanding of the degree to which the proposed system will likely solve the business problems or take advantage of the opportunities outlined in the systems service request or project identification study.

Answer:  c

Diff: 2             Page Ref: 138

 

161) To gain an understanding of the organization’s ability to construct the proposed system.

Answer:  f

Diff: 2             Page Ref: 135

162) To provide an understanding of any potential legal ramifications due to the construction of the system.

Answer:  b

Diff: 2             Page Ref: 139

 

163) To evaluate how key stakeholders within the organization view the proposed system.

Answer:  d

Diff: 2             Page Ref: 139

 

164) To provide an understanding of the likelihood that all potential time frames and completion date schedules can be met, and that meeting these dates will be sufficient for dealing with the needs of the organization.

Answer:  e

Diff: 2             Page Ref: 138

 

165) To identify the financial benefits and costs associated with the development project.

Answer:  a

Diff: 2             Page Ref: 127

 

 

166) Briefly identify and define the six major categories of feasibility.

Answer:  The six feasibility categories are economic, technical, operational, schedule, legal and contractual, and political. The specifics of a particular project will determine the emphasis placed on each of the feasibility criteria. Economic feasibility seeks to identify the financial benefits and costs associated with the project. Technical feasibility seeks to determine if the organization is capable of developing the new system. Operational feasibility examines the degree of likelihood that the candidate system will be able to solve the business problem or take advantage of opportunities. Schedule feasibility examines the likelihood that all potential time frame and completion date schedules can be met. Legal and contractual feasibility tries to assess the potential legal ramifications due to the construction of the new system. Determining stakeholder’s views of the candidate system is the intent of political feasibility.

Diff: 2             Page Ref: 127

 

167) Briefly identify three commonly used economic cost-benefit analysis techniques.

Answer:  Break-even analysis (BEA) is the process of finding the amount of time required for the cumulative cash flow from a project to equal its initial and ongoing investment. Net present value (NPV) uses a discount rate determined from the company’s cost of capital to establish the present value of a project. Return on investment (ROI) is the ratio of the net cash receipts of the project divided by the cash outlays of the project. A tradeoff analysis can be made between competing projects.

Diff: 3             Page Ref: 133-134

168) What is a Project Scope Statement and Baseline Project Plan? How are they different?

Answer:  The Baseline Project Plan and the Project Scope Statement are the major outcomes and deliverables for the project initiation and planning phase. All information collected and analyzed during this phase is contained in the BP. This plan reflects the best estimate of the project’s scope, benefits, costs, risks, and resource requirements. It also specifies detailed project activities for the following phase and more general specifications for the remaining phases. The BPP can be used by the project selection committee to determine the project worth – accept, reject, or modify. The project Scope Statement is a document prepared for the customer during project initiation and planning that describes what the project will deliver and outlines generally at a high level all work required to complete the project. The PSS consists of a high-level summary of the BP. While the actual role of the PSS can vary, the PSS can be used by the analyst and the customer to gain an understanding of the project.

Diff: 3             Page Ref: 126-127

 

 

169) Describe the differences between tangible and intangible benefits and costs, and between one-time and recurring benefits and costs.

Answer:  A tangible benefit refers to a benefit derived from the creation of an information system that can be measured in dollars and with certainty. Examples include reduced personnel expenses, lower transaction costs, and higher profit margins. Intangible benefit refers to a benefit derived from the creation of an information system that cannot be easily measured in dollars or with certainty. Examples include competitive necessity, promotion of organizational learning and understanding, and improved asset utilization. While tangible costs are costs associated with an information system that can be measured in dollars and with certainty, intangible costs are costs associated with an information system that cannot be easily measured in terms of dollars or with certainty. Hardware costs, labor costs, and operational costs are tangible costs. Loss of customer goodwill, employee morale, and operational inefficiency are intangible costs. One-time costs are costs associated with project start-up and development or system start-up. This type of cost includes hardware and software purchases, user training, and site preparation. Recurring costs are costs resulting from the ongoing evolution and use of a system. New software and hardware leases, incremental communications, and incremental data storage expense are recurring costs.

Diff: 3             Page Ref: 129-131

 

170) Briefly define walkthrough and describe the role of each participant.

Answer:  A walkthrough is a peer group review of any product created during the systems development process. During the review users, management, and the development group participate through various roles. These roles are coordinator, presenter, user, secretary, standards bearer, and maintenance oracle. The coordinator is the person who plans the meeting and facilitates a smooth meeting process. The presenter is the individual who describes the work product to the group. Ensuring that the work product meets the needs of the project’s customers is the role fulfilled by the user. The person taking notes and recording decisions or recommendations made by the group is the secretary. The standards bearer role is to ensure that the work product adheres to organizational technical standards. The maintenance oracle is the individual who reviews the work product in terms of future maintenance activities.

Diff: 2             Page Ref: 145-146

171) Assume a proposed system has a useful life of 5 years, one-time costs of $50,000, recurring costs of $25,000 per year, and tangible benefits of $45,000 per year. If the cost of capital is 10%, what is the overall NPV? Overall ROI? Break-even point?

Answer:   The overall NPV is $25,816; the overall ROI is .18, and break-even occurs in year 4.

Diff: 2             Page Ref: 133

 

172) Assume a proposed system has a useful life of 5 years, one-time costs of $250,000, recurring costs of $80,000 per year, and tangible benefits of $175,000 per year. If the cost of capital is 12%, what is the overall NPV? Overall ROI? Break-even point?

Answer:  The overall NPV is $92,454; the overall ROI is .17, and break-even occurs in year 4.

Diff: 2             Page Ref: 133

 

173) Assume a proposed system has a useful life of 5 years, one-time costs of $1,000,000, recurring costs of $250,000 per year, and tangible benefits of $750,000 per year. If the cost of capital is 10%, what is the overall NPV? Overall ROI? Break-even point?

Answer:  The overall NPV is $895,393; the overall ROI is .46, and break-even occurs in year 3.

Diff: 2             Page Ref: 133

174) Assume a proposed system has a useful life of 5 years, one-time costs of $50,000, recurring costs of $25,000 per year, and tangible benefits of $35,000 per year. If the cost of capital is 10%, what is the overall NPV? Overall ROI? Break-even point?

Answer:  The overall NPV is $12,092, and the overall ROI is negative. Based on the information given, this project will not break-even during its useful life.

Diff: 2             Page Ref: 133

 

175) Assume a proposed system has a useful life of 5 years, one-time costs of $1,000,000, recurring costs of $250,000 per year, and tangible benefits of $750,000 per year. If the cost of capital is 10%, what is the overall NPV? Overall ROI? Break-even point?

Answer:  The overall NPV is $895,393 and the overall ROI is .46. The project breaks even in year 3.

Diff: 2             Page Ref: 133

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