Question 1

A method for deciding among different IS investments or when considering alternative designs for a given system is ________.
A) transactional analysis
B) weighted multicriteria analysis
C) finite element analysis
D) independent component analysis
E) link quality analysis

Accepted Answer

Weighted multicriteria analysis is a method used to evaluate and compare different options based on multiple criteria that have different levels of significance. It takes into consideration the goals and priorities of the decision-maker, and assigns weights to each criterion to reflect their relative importance. This allows for a more structured and systematic approach to making decisions and choosing among different IS investments or system designs. The other options listed are not relevant or applicable for this purpose.

Question 2

Which of the following scenarios demonstrates system efficiency?
A) Barker's new information system allowed the company to reach its monthly targets.
B) Barker's was able to easily reach its sales goals through the use of its information system.
C) Barker's new information system allowed the company to set achievable targets.
D) Barker's new information system helped employees to achieve their individual goals alongside the company's goals.
E) The new information system at Barker's helped employees work faster,with less effort.

Accepted Answer

Efficiency refers to how well a system utilizes its resources to achieve its goals. Option E demonstrates system efficiency by indicating that the new information system has helped employees work faster and with less effort, indicating that the system is utilizing resources (employee time and effort) more efficiently to achieve the company's goals. The other options do not necessarily demonstrate system efficiency in the same way.

Question 3

B&Z Inc.implemented a new information system two months ago but there have been no concrete increases in productivity as a result of the system.A similar system has been in place at the company headquarters for the past two years,and this system has resulted in significant,quantifiable benefits.Which of the following reasons is the most likely explanation for the lack of results?
A) The benefits of the new information system are difficult to pinpoint because the firm is considering the wrong indicators.
B) The new system is being used to redistribute market share rather than make the whole market bigger.
C) It can take years from the first implementation of this new system before the magnitude of benefits is felt by the organization.
D) The benefits of the new information system are difficult to pinpoint because the firm is not familiar with the working of the system.
E) The new system may be beneficial for individual firms but not for a particular industry or the economy as a whole.

Accepted Answer

The explanation that it can take years from the first implementation of this new system before the magnitude of benefits is felt by the organization is the most reasonable given the scenario. The fact that a similar system resulted in significant benefits after two years at the company headquarters indicates that the benefits of the system may take some time to manifest. Therefore, it is likely that the new information system has not had enough time to demonstrate its potential benefits.

Question 4

Which of the following is an example of an intangible benefit for a firm?
A) lower transport and operational costs
B) a significant increase in sales
C) a reduction in operational errors
D) cost reductions as compared to previous data
E) improved customer perceptions of the firm

Accepted Answer

Improved customer perceptions of the firm is an example of an intangible benefit because it is not a physical, measurable asset, but rather a perception or reputation that can have significant impact on the success and profitability of the firm.

Question 5

Business case arguments based on fear are dependent on ________.
A) the belief that implementing the new information system can have significant positive consequences for the firm
B) beliefs about organizational strategy,competitive advantage,industry forces,customer perceptions,market share,and so on
C) data,quantitative analysis,and/or indisputable factors
D) the notion that if the system is not implemented,the firm will lose out to the competition or go out of business
E) the results of a qualitative analysis of employee responses to the new information system

Accepted Answer

Business case arguments based on fear rely on the idea that without implementing the system, the firm faces negative consequences such as falling behind competitors or going out of business. The other options may be factors in justifying the implementation of a new system, but are not specific to fear-based arguments.

Question 6

Business case arguments based on data,quantitative analysis,and/or indisputable factors are known as arguments based on ________.
A) fads
B) faith
C) facts
D) fear
E) fiction

Accepted Answer

Business case arguments based on data, quantitative analysis, and indisputable factors are known as arguments based on facts. Fads, faith, fear, and fiction are not based on concrete evidence or rational analysis.

Question 7

BelAir Tech implements a new information system and sees a 5 percent increase in monthly sales after implementation.This is a(n)________ of the system.
A) intangible benefit
B) tangible cost
C) tangible benefit
D) recurring cost
E) non-recurring cost

Accepted Answer

The 5 percent increase in monthly sales is a direct and observable improvement in the company's financial performance, which is a tangible benefit of the information system implementation. Option A is incorrect because intangible benefits are not directly measurable or observable. Option B, D, and E are also incorrect because they refer to costs, not benefits.

Question 8

Business case arguments based on ________ focus on beliefs about organizational strategy,competitive advantage,industry forces,customer perceptions,market share,and so on.
A) faith
B) fear
C) facts
D) fiction
E) fallacy

Accepted Answer

The answer of Business case arguments based on ________ focus...

Question 9

"Increased customer reach of the new Web-based system will result in at least a modest increase in sales." This statement represents a(n)________ for the company.
A) recurring cost
B) intangible cost
C) tangible benefit
D) non-recurring cost
E) intangible benefit

Accepted Answer

The statement mentions that increasing the customer reach through the new Web-based system will result in at least a modest increase in sales. This indicates a tangible benefit for the company.

Question 10

System efficiency is the extent to which a system ________.
A) allows firms to reach their operational targets
B) allows people to plan tasks that are achievable
C) enables people to accomplish goals or tasks well
D) enables people to do things faster or at lower cost
E) allows employees to reduce the risks associated with tasks

Accepted Answer

System efficiency refers to the ability of a system to perform tasks quickly and at lower cost. This implies that the system is able to optimize resources and productivity, leading to increased efficiency. Therefore, option D is the most suitable choice as it defines system efficiency in terms of faster and cost-effective performance.

Question 11

Which of the following is an example of a recurring cost associated with an information system?
A) installation charges
B) purchase of office space
C) employee salaries
D) technology purchases
E) cost of system acquisition

Accepted Answer

Employee salaries are a recurring cost associated with an information system as they are required to maintain and operate the system on an ongoing basis. The other options listed are either one-time costs or may not be directly related to the information system itself.

Question 12

A break-even analysis ________.
A) identifies at what point tangible benefits equal tangible costs
B) analyzes the relevant cash flow streams associated with the system at the organization's discount rate
C) refers to the discounted sum,or present value,of a stream of costs associated with a project or proposal
D) attempts to summarize the overall value of money for a project or proposal
E) is the rate of return used by an organization to compute the present value of future cash flows

Accepted Answer

A break-even analysis identifies the point at which the costs and benefits of a project or proposal are equal, and the project breaks even.

Question 13

Which of the following is an example of an intangible cost for a system?
A) cost of losing customers
B) employee salaries
C) cost of installation and maintenance
D) cost of employee recruitment and retention
E) customer support costs

Accepted Answer

The cost of losing customers is an intangible cost because it is not a direct expense that can be easily quantified, but rather a cost associated with lost revenue and potential future revenue. The other options are tangible costs that can be easily measured or estimated.

Question 14

Which of the following is an example of a business case argument based on fear?
A) If we do not implement this system,our competitors could gain a significant advantage over us.
B) This system has the potential to reduce required effort by 40 percent.
C) Using this system will help our employees serve customers more efficiently.
D) The system can help us meet both individual as well as organizational goals.
E) The new system is user-friendly and can be implemented almost immediately.

Accepted Answer

A business case argument based on fear is one that highlights the negative consequences of not taking action. Option A states that if the system is not implemented, the competitors could gain a significant advantage, which is an example of a fear-based argument.

Question 15

The total cost of ownership of a system refers to ________.
A) all non-recurring costs associated with a system
B) all costs associated with ongoing use and maintenance of a system
C) the total cost of acquisition of a particular system
D) the total cost of acquisition and all costs associated with use and maintenance of a system
E) the recurring costs associated with a system

Accepted Answer

The total cost of ownership includes the cost of acquisition as well as ongoing use and maintenance costs, making D the correct choice. Choices A, B, and E only cover specific aspects of the total cost of ownership, while C only covers the acquisition cost.

Question 16

BelAir Tech is conducting a cost-benefit analysis for its IS department.In this,the salary of an employee is an example of a(n)________.
A) intangible and tangible cost
B) tangible and recurring cost
C) intangible and recurring cost
D) tangible and non-recurring cost
E) recurring and non-recurring cost

Accepted Answer

The salary of an employee is a tangible cost as it represents a monetary expenditure that can be easily quantified. It is also a recurring cost as it is typically paid on a regular basis such as monthly or bi-weekly.

Question 17

BelAir Tech replaced its outdated information system with a newer version.As a result,its employees reported a significant increase in work speed.Which of the following is most similar to BelAir's situation?
A) Barker's new information system allowed the company to reach its monthly sales target easily.
B) Twining Co.targeted a 5 percent increase in customer acquisition and achieved this with the new information system.
C) Employees at Niven Ltd.felt that customer satisfaction increased after the new information system was implemented.
D) Castle's new information system helped employees to achieve their individual goals alongside the company's goals.
E) At Sterling Inc.the average number of application forms processed in an hour rose from 4 to 6 as a result of the new system.

Accepted Answer

Sterling Inc.'s increase in the average number of application forms processed per hour is similar to BelAir Tech's increase in work speed after implementing a new information system. Both situations involve an increase in productivity or efficiency as a result of upgrading their technology.

Question 18

Which of the following statements best describes the productivity paradox for technology investment?
A) The productivity of any technology is directly proportional to the investment in that technology.
B) While it is easy to quantify the costs associated with developing an information system,it is often difficult to quantify tangible productivity gains from its use.
C) As investment in technology increases,productivity decreases steadily.
D) While it is easy to identify and quantify the intangible benefits of an information system,it is not easy to quantify the tangible benefits.
E) The productivity of an information system is in no way related to the investment in the technology.

Accepted Answer

The productivity paradox for technology investment refers to the fact that while we expect investment in technology to increase productivity, it often does not happen in practice. This is because while costs are easily quantifiable, the benefits of technology are often intangible and difficult to measure. Choice B reflects this idea by stating that it is difficult to quantify the tangible productivity gains from using an information system.

Question 19

Which of the following is true for tangible costs?
A) They are only recurring costs.
B) They are always non-recurring costs.
C) They are relatively easy to quantify.
D) They are the same as intangible benefits.
E) They are difficult to qualify.

Accepted Answer

Tangible costs are costs that can be easily quantified and measured, such as salaries, equipment, and supplies. Therefore, option C is the correct choice.

Question 20

Which of the following is true of system effectiveness?
A) It is the extent to which a system enables the firm to accomplish goals well.
B) It is the extent to which a system allows a firm to plan its tasks.
C) It is the extent to which a system enables the firm to do things faster,at lower cost.
D) It is the extent to which a system allows a firm to cut operational costs.
E) It is the extent to which a system enables people to accomplish tasks with relatively little time and effort.

Accepted Answer

System effectiveness is the extent to which a system enables the firm to accomplish its goals well. It is not solely focused on speed or cost-cutting, but rather on the overall ability of the system to help the firm achieve its objectives. Option A is the most accurate and comprehensive statement of the concept.

Quiz 9: Developing and Acquiring Information Systems

A method for deciding among different IS investments or when considering alternative designs for a given system is ________.

Which of the following scenarios demonstrates system efficiency?

Which of the following is an example of an intangible benefit for a firm?

Business case arguments based on fear are dependent on ________.

Business case arguments based on data,quantitative analysis,and/or indisputable factors are known as arguments based on ________.

BelAir Tech implements a new information system and sees a 5 percent increase in monthly sales after implementation.This is a(n) ________ of the system.

Business case arguments based on ________ focus on beliefs about organizational strategy,competitive advantage,industry forces,customer perceptions,market share,and so on.

"Increased customer reach of the new Web-based system will result in at least a modest increase in sales." This statement represents a(n) ________ for the company.

System efficiency is the extent to which a system ________.

Which of the following is an example of a recurring cost associated with an information system?

A break-even analysis ________.

Which of the following is an example of an intangible cost for a system?

Which of the following is an example of a business case argument based on fear?

The total cost of ownership of a system refers to ________.

BelAir Tech is conducting a cost-benefit analysis for its IS department.In this,the salary of an employee is an example of a(n) ________.

BelAir Tech replaced its outdated information system with a newer version.As a result,its employees reported a significant increase in work speed.Which of the following is most similar to BelAir's situation?

Which of the following statements best describes the productivity paradox for technology investment?

Which of the following is true for tangible costs?

Which of the following is true of system effectiveness?