Question 1

When using the payback method to determine economic feasibility of projects,the company usually accepts the project with the
A) longest payback period.
B) mid-range payback period.
C) payback period that is equal to the project's economic life.
D) shortest payback period.

Accepted Answer

The payback period is the amount of time it takes for a project to recover its initial investment. The shorter the payback period, the quicker the project can start generating positive cash flows. Therefore, the best choice when using the payback method is to accept the project with the shortest payback period, as it minimizes the risk of losing investment capital and provides the fastest return on investment.

Question 2

A federal law demands that certain information about foreign customers should be maintained in the information system.In which part of a feasibility study should this requirement be considered?
A) economic feasibility
B) legal feasibility
C) operational feasibility
D) technical feasibility

Accepted Answer

The requirement of a federal law regarding the maintenance of information about foreign customers pertains to legal feasibility. Legal feasibility refers to the assessment of whether the proposed system complies with legislative, regulatory, and legal requirements.

Question 3

Which planning technique does not show the relationships among various activities?
A) Gantt chart
B) PERT
C) the critical path method
D) VAN

Accepted Answer

Gantt chart is a visual representation of tasks or activities to be completed over a period of time. It shows the start and end dates of tasks and their progress over time, but it does not show the relationships among various activities. PERT and the critical path method both depict the relationships among tasks and their dependencies, and VAN (Value analysis network) is a technique used to analyze the cost-benefit of activities.

Question 4

Which of the following parts of a feasibility study is generally considered the most important and is frequently re-analyzed?
A) economic feasibility
B) operational feasibility
C) scheduling feasibility
D) technical feasibility

Accepted Answer

Economic feasibility is generally considered the most important part of a feasibility study as it assesses the financial viability of a project or investment. It involves analyzing costs and potential profits, as well as considering factors such as market demand and competition. Economic feasibility is also frequently re-analyzed as market conditions and financial factors may change over time.

Question 5

When is a proposal to conduct a systems analysis prepared?
A) after a written request for systems development is prepared
B) after the development team completes the survey of the existing AIS
C) after the initial investigation of the project is approved
D) before the initial investigation

Accepted Answer

The proposal to conduct a systems analysis is prepared after the initial investigation of the project is approved. This is because the systems analysis serves as the next step in the systems development life cycle (SDLC) after the initial investigation. It is during the systems analysis phase that the development team performs a detailed analysis of the current system or business process and identifies any areas of improvement or opportunities for automation. Therefore, it is important that the initial investigation be approved before proceeding with the systems analysis phase.

Question 6

One behavioral problem occurs when there is insufficient explanation of why a change must take place.This problem is a result of
A) communication.
B) natural resistance to change.
C) the manner in which the change is introduced.
D) top management support of change.

Accepted Answer

Insufficient explanation of why a change must take place is primarily a communication issue, as it involves not effectively conveying the reasons and benefits of the change to those affected.

Question 7

Accountants can contribute to feasibility study analysis by evaluating cost savings and other benefits versus operating costs and other cash outflows.This is better known as
A) the "best guess" model of benefit analysis.
B) the "value added" benefit model.
C) the capital budgeting model.
D) the estimated benefits model.

Accepted Answer

The described analysis is part of the capital budgeting process, which involves evaluating potential investments by comparing their expected cash inflows to their expected cash outflows. Accountants are well-equipped to contribute to this analysis by evaluating the costs and benefits of a proposed investment, including assessing potential cost savings, revenue increases, and other benefits. Additionally, accountants may also evaluate the risks associated with the proposed investment and incorporate this information into the decision-making process. This process is commonly used to evaluate new projects or expansion opportunities and is a critical step in the decision-making process for many organizations.

Question 8

One behavioral problem occurs when there is insufficient explanation of why a change must take place.In order to curtail this resistance from occurring within the organization,what guideline should be implemented and followed?
A) attempt to meet the users' needs
B) avoid emotionalism
C) keep communication lines open
D) keep the system simple

Accepted Answer

Keeping communication lines open is the best choice because it allows for a continuous and clear explanation of why a change must take place. This will help address any concerns or questions that may contribute to resistance from employees. It also creates a culture of transparency and trust, which supports organizational change efforts. Attempting to meet the users' needs and keeping the system simple can also be helpful but may not address the root cause of resistance. Avoiding emotionalism is important but may not be enough to mitigate resistance caused by lack of explanation.

Question 9

There are several important aspects to be considered during a feasibility study.The aspect that asks the question,"Can people use the system and will they use it?" is called
A) economic feasibility.
B) operational feasibility.
C) scheduling feasibility.
D) technical feasibility.

Accepted Answer

The aspect that asks whether people can and will use the system is related to the operational feasibility. Operational feasibility evaluates whether the system is useful and acceptable to the end-users and takes into account factors such as user experience, training, and potential resistance to changes in the system. Economic feasibility focuses on the financial aspect of the project, while scheduling feasibility assesses whether the project can be completed within a given timeframe. Technical feasibility evaluates whether the system can be developed and implemented using the available technology and resources.

Question 10

Major resistance to change takes one of several forms.What is the name of the form of resistance where the new system is blamed for any and every unpleasant occurrence?
A) aggression
B) avoidance
C) procrastination
D) projection

Accepted Answer

Projection is the form of resistance where the new system is blamed for any and every unpleasant occurrence. This occurs when employees feel threatened by the change and instead of accepting responsibility for potential failures, they deflect the blame onto the change itself.

Question 11

During which phase of systems analysis does modeling of the existing system occur?
A) information needs and system requirements
B) the feasibility study
C) the initial investigation
D) the systems survey

Accepted Answer

The modeling of the existing system occurs during the systems survey phase of systems analysis, where the current system is analyzed, documented, and represented through various modeling techniques such as data flow diagrams, entity-relationship diagrams, and process flow charts.

Question 12

What is the basic model used to create a framework for economic feasibility analysis?
A) the capital budgeting model
B) the cash budgeting model
C) the cost/benefit model
D) All of the above models are used to create a framework.

Accepted Answer

The capital budgeting model is the most commonly used model for economic feasibility analysis. It helps to analyze the potential profitability of a project by evaluating the expected cash flows and comparing them to the required investment. The cash budgeting model is also useful, but it focuses mainly on the cash inflows and outflows of a project rather than its profitability. The cost/benefit model is useful in evaluating the overall benefits of a project, but it may not provide a complete picture of the project's economic feasibility. Therefore, the best choice for creating a framework for economic feasibility analysis is the capital budgeting model.

Question 13

What is most difficult to quantify when assessing economic feasibility?
A) benefits
B) costs
C) Costs, benefits, and the payback period are all of equal difficulty.
D) the payback period

Accepted Answer

Benefits are often more difficult to quantify because they can include intangible factors such as customer satisfaction, brand reputation, and employee morale, which are not easily measured in monetary terms.

Question 14

In which phase of the systems development life cycle is the feasibility study first performed?
A) conceptual design
B) implementation and conversion
C) physical design
D) system analysis

Accepted Answer

The feasibility study is typically the first step in the system analysis phase of the systems development life cycle. This study involves determining whether a proposed project is feasible in terms of economic, technical, operational, and scheduling factors.

Question 15

During what step in systems analysis is an examination made of each development activity to define the problem to be solved?
A) information needs and systems requirements
B) the feasibility study
C) the initial investigation
D) the systems survey

Accepted Answer

The initial investigation is the step in systems analysis where an examination is made of each development activity to define the problem to be solved. This includes gathering information, identifying stakeholders, and establishing project objectives.

Question 16

A good rule to follow to prevent behavioral problems associated with implementing a new system is "Avoid complex systems that cause radical changes." What expression is used to describe this system design rule?
A) allay fears and stress new opportunities
B) keep the system simple and humanize it
C) control users' expectations
D) test the system

Accepted Answer

This system design rule is known as "keep the system simple and humanize it," which means that the system should be designed in a way that is easy to use and familiar to users, minimizing the need for radical changes that could cause behavioral problems. This applies to both the design of the system itself and the way it is implemented and communicated to users. By keeping the system simple and humanizing it, users are more likely to accept and adapt to the changes, reducing the risk of behavioral problems arising.

Question 17

The type of user resistance in which data are erroneously entered into a system is called
A) acceptance.
B) aggression.
C) avoidance.
D) projection.

Accepted Answer

Aggression is a type of user resistance where users may intentionally or unintentionally enter incorrect data into a system as a form of protest or frustration.

Question 18

A network of arrows and nodes representing project activities that require an expenditure of time and resources and the completion of initiation of activities,respectively,is called
A) a Gantt chart.
B) a PERT diagram.
C) a SDLC cycle.
D) CASE.

Accepted Answer

A network of arrows and nodes representing project activities that require an expenditure of time and resources and the completion of initiation of activities is called a PERT (Program Evaluation and Review Technique) diagram. A Gantt chart is a graphical representation of a project schedule. SDLC (System Development Life Cycle) is a process used by software industry to design, develop and test high-quality software. CASE (Computer-Aided Software Engineering) is the use of software tools to assist in the development and maintenance of software.

Question 19

The capital budgeting technique where estimated future cash flows are discounted back to the present is referred to as
A) the future value method.
B) the internal rate of return.
C) the net present value method.
D) the payback method.

Accepted Answer

The capital budgeting technique described is the net present value method, where future cash flows are converted into present values by discounting them using a given rate. The future value method is used for evaluating investments with a single cash inflow, the internal rate of return is a different method for evaluating investments, and the payback method only looks at how many years it takes to recoup the initial investment.

Question 20

Continuing to use a manual system instead of the new AIS is a form of resistance known as
A) acceptance.
B) aggression.
C) avoidance.
D) projection.

Accepted Answer

The resistance described in the question is known as avoidance, which refers to the act of avoiding change or a new system. In this case, the manual system is preferred over the new AIS, which is a form of resistance through inaction or avoidance. Therefore, the correct answer is C, avoidance.

Quiz 20: Introduction to Systems Development Systems Analysis

When using the payback method to determine economic feasibility of projects,the company usually accepts the project with the

A federal law demands that certain information about foreign customers should be maintained in the information system.In which part of a feasibility study should this requirement be considered?

Which planning technique does not show the relationships among various activities?

Which of the following parts of a feasibility study is generally considered the most important and is frequently re-analyzed?

When is a proposal to conduct a systems analysis prepared?

One behavioral problem occurs when there is insufficient explanation of why a change must take place.This problem is a result of

Accountants can contribute to feasibility study analysis by evaluating cost savings and other benefits versus operating costs and other cash outflows.This is better known as

One behavioral problem occurs when there is insufficient explanation of why a change must take place.In order to curtail this resistance from occurring within the organization,what guideline should be implemented and followed?

There are several important aspects to be considered during a feasibility study.The aspect that asks the question,"Can people use the system and will they use it?" is called

Major resistance to change takes one of several forms.What is the name of the form of resistance where the new system is blamed for any and every unpleasant occurrence?

During which phase of systems analysis does modeling of the existing system occur?

What is the basic model used to create a framework for economic feasibility analysis?

What is most difficult to quantify when assessing economic feasibility?

In which phase of the systems development life cycle is the feasibility study first performed?

During what step in systems analysis is an examination made of each development activity to define the problem to be solved?

A good rule to follow to prevent behavioral problems associated with implementing a new system is "Avoid complex systems that cause radical changes." What expression is used to describe this system design rule?

The type of user resistance in which data are erroneously entered into a system is called

A network of arrows and nodes representing project activities that require an expenditure of time and resources and the completion of initiation of activities,respectively,is called

The capital budgeting technique where estimated future cash flows are discounted back to the present is referred to as

Continuing to use a manual system instead of the new AIS is a form of resistance known as