74) 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
Classification: Application
75) 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.
projects
Classification: Concept
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.
Classification: Application
20
77) 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.
Classification: Application
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.
Classification: Application
79) 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.
projects
Classification: Concept
21
80) 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.
projects
Classification: Concept
81) The current value of a future cash flow is referred to as:
A) future value.
B) present value.
C) investment value.
D) discount rate.
E) cash flow rate.
projects
Classification: Concept
82) 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:
A) return on investment (ROI).
B) break-even analysis (BEA).
C) net present value (NPV).
D) future value (FV).
E) currency rate analysis (CRA).
projects
Classification: Concept
22
83) The ratio of the net cash receipts of the project divided by the cash outlays of the project,
enabling trade-off analysis to be made between competing projects, is often referred to as:
A) return on investment (ROI).
B) break-even analysis (BEA).
C) net present value (NPV).
D) future value (FV).
E) currency rate analysis (CRA).
projects
Classification: Concept
84) 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:
A) return on investment (ROI).
B) break-even analysis (BEA).
C) net present value (NPV).
D) future value (FV).
E) currency rate analysis (CRA).
Classification: Concept
85) To gain an understanding of the organization’s ability to construct the proposed system is the
goal of:
A) operational feasibility.
B) schedule feasibility.
C) technical feasibility.
D) political feasibility.
E) construction feasibility.
projects
Classification: Concept
23
86) 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:
A) technical feasibility.
B) political feasibility.
C) operational feasibility.
D) schedule feasibility.
E) construction feasibility.
projects
Classification: Concept
87) 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:
A) Information Systems Plan.
B) Project Scope Statement.
C) Mission Statement.
D) Baseline Project Plan.
E) Systems Service Request.
projects
Classification: Concept
24
88) A peer-group review of any product created during the systems development process is called
a:
A) baseline project plan.
B) structured workflow.
C) structured walkthrough.
D) statement of work.
E) none of the above.
projects
Classification: Concept
89) All of the following might attend a structured walkthrough meeting EXCEPT:
A) CEO.
B) Standards Bearer.
C) User.
D) Maintenance Oracle.
E) Presenter.
projects
Classification: Concept
90) Briefly discuss the three primary project identification and selection phase activities.
projects
Classification: Synthesis
25
91) Briefly identify and define the six major categories of feasibility.
projects
Classification: Synthesis
92) Briefly identify three commonly used economic cost-benefit analysis techniques.
projects
Classification: Synthesis
93) What is a Project Scope Statement? What is a Baseline Project Plan? How are they different?
projects
Classification: Synthesis
26
94) Define walkthrough and describe the role of each participant.
projects
Classification: Synthesis
27