CMIS Final Review test bank Strategic Approaches to Information Systems (Northern Alberta Institute of Technology)

CMIS Final Review test bank


Strategic Approaches to Information
Systems (Northern Alberta Institute of
Technology)

,File: chapter7TestBank.docx, Chapter 7, The Business of IT



Multiple Choice



1. This is a plan designed to counter a manmade or natural disaster that could cripple
an enterprise.
a) Business Continuity Plan
b) Disaster Recovery Plan
c) Business Disaster Plan
d) Disaster Business Case
e) Business-IT Maturity Model

Ans: a (Medium)
Response: See page 201.


2. Which of the following should a manager expect from the IS organization?
a) Promotion of enterprise security.
b) Participation in setting and implementing strategic direction.
c) Innovation of current processes.
d) Management data, information and knowledge
e) All of the above

Ans: e (Hard)
Response: See page 201-202.


3. Cloud computing providers often take responsibility for managing data and
applications for a firm. These cloud computing provider’s management of a firm’s
information must consider international transfer of information. This is an example
of which global IT issue?
a) Political stability
b) Transparency
c) Sourcing
d) Data flow across borders
e) Business Continuity Planning

Ans: b (Medium)
Response: See page 204.

,4. The responsibility of the IT organization is to:
a) Manage core business functions like selling, accounting and manufacturing.
b) Partner with business managers to insure the right IS exists to support
the business strategy.
c) Set the business strategy.
d) Have sole responsibility for building information systems for the organization.
e) Design business processes.

Ans: b (Medium)
Response: See page 205.


5. A company that seeks an IT portfolio that lowers costs as the primary business
objective will be more likely to increase spending on because these
applications can help automate processes.
a) strategic systems
b) infrastructure
c) informational systems
d) transactional systems
e) social media

Ans: d (Hard)
Response: See page 214.


6. This method of IT funding is the most equitable, as the costs associated with IT
are based on use. However, it can be difficult and tedious to calculate the usage
costs.
a) Allocation
b) Corporate budgeting
c) Usage
d) Distributed
e) Chargeback

Ans: e (Medium)
Response: See page 224.


7. Sam has just purchased 10 new high speed color laser printers for his company. He is
very excited because he got a 40% discount and paid only $2,990 for each unit. His boss,
Joe, wants to know things such as operating costs, support, overhead, etc. for the printers.
Joe wants to know this value:
a) RCO
b) TCO
c) ROI
d) NPV
e) EVM

, Ans: b (Hard)
Response: See page 227


8. Activity based costing
a) groups costs into meaningful buckets that are then distributed based on
the activity or product they support.
b) is useful for allocating small project work.
c) charges all costs to “cost centers”.
d) considers only initial capital investments.
e) calculates ongoing maintenance costs.

Ans: a (Hard)
Response: See page 227.


9. This financial calculation provides a percentage rate that measures the relationship
between the amount the business gets back from an investment and the amount
invested.
a) IRR
b) ROI
c) Payback
d) NPV
e) EVA

Ans: b (Medium)
Response: See page 217


10. Scorecards provide a summary of information gathered over a period of
time. Another common IT monitoring tool is the .
a) baseline
b) metrics
c) portfolio
d) dashboard
e) monitor

Ans: d (Medium)
Response: See page 221


11. Joe works for a company where the IT department charges him for the number of
CRM login accounts that are in his department. What type of IT funding model is his
company deploying?
a) Allocation
b) Corporate budgeting