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20 Cards in this Set

  • Front
  • Back
Benchmarks to assess IT investments come in different forms?
A.
three
B.
two
C.
four
D.
five


page 569
two
TCO is an acronym for
A.
Total Cost of Output
B.
Total Cost of Ownership
C.
Total Cost of Operations
D.
Total Cost of Outsourcing


page 566
Total Cost of Ownership
of software development has become a common practice in recent years.
A.
offshore outsourcing
B.
onshore outsourcing
C.
offshore outstanding
D.
onshore outstanding


page 577
offshore outsourcing
Moore's Law means that the price-to-performance ratio of computer chips
A.
declines in a linear fashion.
B.
declines in an exponential fashion.
C.
increases in a linear fashion.
D.
increases in an exponential fashion.


page 555
declines in an exponential fashion
Economists define productivity as
A.
the rates at which outputs grow over time.
B.
the quality at which outputs increases over time.
C.
outputs divided by inputs.
D.
the rates at which inputs get less expensive over time.


page 556
outputs divided by inputs
The productivity ratio is known as multifactor productivity if multiple
A.
inputs such as labor, investments, and materials are included in the productivity estimate.
B.
input and output factors from diverse industries such as transportation, manufacturing, and health care are included in the productivity estimate.
C.
outputs such as quality of life and price-to-performance ratio are included in the productivity estimate.
D.
information technologies are evaluated to insure greater accuracy of measurement.
inputs such as labor, investments, and materials are included in the productivity estimate.
A “runaway project” is an information systems project that is
A.
completed on time, but requires much more time and money than originally planned.
B.
eventually completed, and requires much more time and money than originally planned.
C.
completed on time, but requires extensive outsourcing to finish which doubles or triples the costs.
D.
eventually completed, and requires professional project planning to finish within budget.
eventually completed, and requires much more time and money than originally planned.
Most experts agree that it is not in the customer's best interests to write an outsourcing contract for a time period longer than _________ years.
A.
1
B.
5
C.
10
D.
20
5
The name given to the situation in which a leading product in an industry attracts a base of users which leads to development of complementary products, is termed the
A.
network effect
B.
lock-in effect.
C.
increasing returns effect.
D.
dominant market share effect.


page 584
network effect
One of the disadvantages of this traditional valuation method is that it assumes reinvestment at the same rate.
A.
IRR
B.
NPV
C.
Payback period
D.
Benefit-to-Cost ratio


page 565
IRR
One of the disadvantages of this traditional valuation method is that it ignores cash flows after payback is achieved.
A.
IRR
B.
NPV
C.
Payback period
D.
Benefit-to-Cost ratio
payback period
One of the disadvantages of this traditional valuation method is that it is difficult to compare projects of unequal lives or sizes.
A.
IRR
B.
NPV
C.
Payback period
D.
Benefit-to-Cost ratio
NPV
One of the advantages of some of the traditional valuation methods is that they bring all projects to common footing. Which of the following does not offer that advantage?
A.
IRR
B.
NPV
C.
EA
D.
Benefit-to-Cost ratio


page 565
EA
The three major cost types for computing the Total Cost of Ownership of an IT system are
A.
Acquisition cost, Operations cost, and Training cost.
B.
Acquisitions cost, Operations cost, and Control cost.
C.
Acquisitions cost, Training cost, and Control cost.
D.
Acquisition cost, Installation cost, and Operations cost


pages 566-567
Acquisitions cost, Operations cost, and Control cost.
The discrepancy between measures of investment in information technology and measures of output at the national level has been called
A.
productivity paradox
B.
national discrepancy
C.
measure of output
D.
GDP


page 556
productivity paradox
Is a method that evaluates intangible benefits on a low-cost, trial basis before deciding whether to commit to a larger investment in a complete system.
A.
Value Analysis
B.
Intangible Benefit Analysis
C.
Trial Basis
D.
Low-Cost Analysis
value analysis
This Approach focuses on key organizational objectives, including intangible financial benefits, impacts on the business domain, and impact on IT itself.
A.
information economics
B.
Scoring Methodology
C.
Financial approach
D.
Economics
information economics
Evaluates alternatives by assigning weights and scores to various aspects and then calculating the weighted totals.
A.
Scoring Methodology
B.
Information Economics
C.
Economics
D.
Financial Economics


page 568
Scoring methodology
One approach to evaluating infrastructure is to focus on objective measures of performance known as __________.
A.
benchmarks
B.
infrastructure evaluation
C.
Evaluation
D.
Infrastructure


page 569
benchmarks
A ______ is a specific, measurable standard against which actual performance is compared.
A.
metric
B.
revenue growth
C.
cost reduction
D.
cost
metric