Deck 5: Initiating and Planning Systems Development Projects

Question 1

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

Answer 1

False

Question 2

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

Answer 2

True

Question 3

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

Answer 3

True

Question 4

Increased flexibility is an intangible benefit.

Question 5

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.

Question 6

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

Question 7

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

Question 8

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

Question 9

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

Question 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.

Question 11

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

Question 12

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

Question 13

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.

Question 14

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

Question 15

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

Question 16

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

Question 17

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

Question 18

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

Question 19

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

Question 20

Improvement of management planning and control is a tangible benefit.

Question 21

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

Question 22

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

Question 23

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

Question 24

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

Question 25

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

Question 26

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

Question 27

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

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

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

Question 30

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 31

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

Question 32

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

Question 33

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%.

Question 34

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

Question 35

The construction of an information system can have political ramifications.

Question 36

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.

Question 37

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

Question 38

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

Question 39

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

Question 40

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

Question 41

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

Question 42

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

Question 43

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

A)project planning
B)project identification and selection
C)project initiation
D)analysis

Question 44

The Project Scope Statement:

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
B)is useful for ensuring that both you and your customer gain a common understanding of the project
C)is a very easy document to create because it typically consists of a high-level summary of the BPP information
D)all of the above

Question 45

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

Question 46

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

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

Question 47

The objective of the project planning process is:

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

Question 48

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

Question 49

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

Question 50

Walkthroughs are a common occurrence in most system development groups.

Question 51

Which of the following is an element of project planning?

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

Question 52

How is project planning distinct from general information systems planning?

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

Question 53

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

Question 54

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

Question 55

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:

A)Baseline Project Plan
B)Information Systems Plan
C)Mission Statement
D)Statement of Work

Question 56

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

Question 57

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:

A)Baseline Project Plan
B)Information Systems Plan
C)Business Case
D)Statement of Work

Question 58

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

Question 59

The Baseline Project Plan:

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

Question 60

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 61

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)

Question 62

Tangible benefits would include:

A)improved organizational planning
B)ability to investigate more alternatives
C)improved asset control utilization
D)lower transaction costs

Question 63

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

A)economic feasibility
B)technical feasibility
C)operational feasibility
D)schedule feasibility

Question 64

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

Question 65

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

Question 66

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

A)intangible benefit
B)qualitative benefit
C)tangible benefit
D)operational benefit

Question 67

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

A)hardware costs
B)labor costs
C)employee morale
D)operational costs

Question 68

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:

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

Question 69

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

Question 70

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

Question 71

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

A)future value
B)present value
C)investment value
D)discount rate

Question 72

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

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

Question 73

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

Question 74

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

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

Question 75

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

A)intangible benefit
B)qualitative benefit
C)tangible benefit
D)operational benefit

Question 76

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

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

Question 77

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

A)project-related costs
B)operating costs
C)start-up costs
D)procurement costs

Question 78

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

A)project-related costs
B)operating costs
C)start-up costs
D)procurement costs

Question 79

The rate of return 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

Question 80

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

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