Information systems and engineering economics | Set 3
1. Which of the following statements is correct?
Correct : C. when determining the cost basis for an asset’s depreciation, you must include all the costs that were incurred to keep the asset in operable condition.
2. Which of the following statements is correct?
Correct : B. no matter which depreciation method you adopt, total tax obligations over a project’s life remain unchanged.
3. You purchased a computer system which cost $50,000 5 years ago. At that time, the system was estimated to have a service life of 5 years with salvage value of $5,000. These estimates are still good. The property has been depreciated according to a 5 year MACRS property class. Now (at the end of year 5 from purchase) you are considering selling the computer at $10,000. What book value should you use in
determining the taxable gains?
Correct : B. 5760
4. Gilbert Corporation had a gross income of $500,000 in tax year 1,
$150,000 in salaries, $30,000 in wages, $20,000 in interest, and $60,000 in depreciation expenses for an asset purchased 3 years ago. Ajax Corporation has a gross income of $500,000 in tax year 1, and $150,000 in salaries, $90,000 in wages, and $20,000 in interest expenses. Apply the current tax rates and determine which of the following statements is correct.
Correct : C. ajax corporation will have a larger net cash flow than gilbert in year 1.
5. A company purchased an industrial fork-lift for $75,000 in year 0. The company expects to use it for the next 7 years after which it plans to sell it for $10,000. The estimated gross income and expenses excluding depreciation for the first year are given below. The fork-lift will be depreciated according to a 5-year MACRS.:Determine the average tax rate applicable in the first year of operation, using the current corporate tax rate schedule.
Correct : B. 0.1731
6. What effect would have on the break-even point and expected profit if
there is an increase in fixed cost?
Correct : B. (increase, decrease)
7. What effect would have on the break-even point and expected profit if
there is an increase in labor cost?
Correct : C. (increase, decrease)
8. What effect would have on the break-even point and expected profit if
there is an increase in unit price?
Correct : B. (decrease, decrease)
9. What effect would have on the break-even point and expected profit if
there is an increase in financing cost?
Correct : B. (increase, decrease)
10. What effect would have on the break-even point and expected profit if
there is an increase in sales expense?
Correct : C. (increase, decrease)
11. Mistakes made in the system analysis stage show up in
Correct : C. implementation
12. The everyday tasks of management include:
Correct : B. planning and leading
13. Studying the future and arranging the means for dealing with it is part of the process of
Correct : D. planning
14. Bureaucracy theory means
Correct : C. a hierarchy of command based on a rational-legal authority structure
15. An in depth study on a single organisation using a variety of data collection methods is known as
Correct : A. case study
16. The method of research that gathers data about perceptions, feelings, opinions through interviews and questionnaires in their actual work setting is known as
Correct : B. field survey
17. The consistency of data obtained from a particular research method is known as
Correct : A. reliability
18. The degree to which a research method actually measures what it is supposed to measure is known as
Correct : B. validity
19. Managing the human resource is
Correct : C. vital for the success of an organisation
20. A method of helping is to understand management and organisational behaviour is to look at _________ that has been done before
Correct : B. research
21. Impersonal treatment of people through consistent application of rules and decisions to
prevent favouritism is part of
Correct : D. bureaucracy theory
22. People who work in the Human resource department should have a knowledge of
Correct : A. organisational behaviour
23. What must entrepreneurs and leaders learn in order to have a successful organisation?
Correct : B. how to think strategically, influence people, develop organisational systems
24. Organisational success in providing a service or a product depends on
Correct : D. the product or service being valued by a segment of society
25. An organisation's mission is
Correct : D. all of the above
26. Which must be accomplished first by the entrepreneur or leader?
Correct : C. making viable the concept for which the organisation was founded
27. Definable groups of people who have an economic and/or social interest in the organisation are called
Correct : A. stakeholders
28. Governance policies, rules, as well as authority structures apply to which key resource element of the organisation?
Correct : C. organisation
29. Productivity is a ratio of outputs (products or services) to ____________.
Correct : C. inputs consumed
30. "Doing the right things" is referred to as ____________.
Correct : A. effectiveness
31. Revitalization involves ________ the strategies, resources, technology, and skills of the
organisation.
Correct : D. renewing
32. What is the relationship between satisfaction and productivity, as suggested by research?
Correct : D. productivity often leads to satisfaction
33. Satisfaction is defined as positive feelings people have about an organisation whether as a/an
Correct : A. supplier, employee, customer, or regulator
34. Management is the practice of
Correct : C. directing, organizing, and developing people, technology, and financial resources
35. Managers are typically integrators of
Correct : D. all of the above
36. Productivity ultimately depends on both
Correct : A. efficiency and effectiveness
37. What is planning?
Correct : A. the process of establishing objectives and specifying how they are to be accomplished in
an uncertain future
38. What is the process of managerial control or controlling?
Correct : B. the process of evaluating whether outcomes match objectives and, if not, taking
corrective action
39. What is competitive strategy?
Correct : D. planning actions at the line of business level about where and how to compete
40. The process of strategic thinking most involves what?
Correct : D. determining a workable fit between organisational competencies and limitations on the
one hand and opportunities and threats on the other
41. At what organisational level is it necessary to balance strategic actions with environmental and resource conditions?
Correct : D. all of the above
42. When setting key objectives, managers first seek to articulate
Correct : C. mission consistent measurable results to be achieved within a specified future time frame
43. Managing strategy involves the craft of
Correct : B. balancing stability and consistency over time with changes when needed
44. An organisation's plans are usually most specific at what level?
Correct : D. they should be essentially equal in specificity at all levels of the organisation
45. When control systems are used to their fullest, they
Correct : B. lead to continuous improvement
46. operational decisions are
Correct : C. both a and b
47. Types of Communication are
Correct : D. all of the above
48. FOIS stands for
Correct : A. freight operation information system
49. CMS stands for
Correct : B. crew management system
50. ICMS stands for
Correct : C. integrated coaching management system
51. Management information systems (MIS)
Correct : D. use the transaction data to produce information needed by managers to run the business
52. The term used to describe those people whose jobs involve sponsoring and funding the project to develop, operate, and maintain the information system is
Correct : C. systems owner
53. If a university sets up a web-based information system that faculty could access to record student grades and to advise students, that would be an example of a/an
Correct : B. intranet
54. Which of the following is not a technology driver for an information system?
Correct : C. knowledge asset management
55. Which of the following is a deliverable of the system implementation phase in a formal system development process?
Correct : A. technical hardware and software solution for the business problem
56. When a bank offers web self-service for customers to answer their questions, the primary outcome is:
Correct : C. reduces costs
57. The general transformation cycle for information is:
Correct : B. data to information to knowledge
58. The most important attribute of information quality that a manager requires is:
Correct : A. relevance
59. To improve the performance of a business process, which of the following is most relevant?
Correct : C. control and feedback
60. The majority of publically available Internet information sources are:
Correct : D. unstructured information
61. Which of the following statements describes a taxonomy?
Correct : A. a browsable hierarchy
62. Information systems that support the business functions that reach out to suppliers are known as:
Correct : A. back office information systems
63. Which is not a typical business function?
Correct : B. benefits and compensation
64. Project Management ensures that
Correct : C. system is developed at minimum cost
65. Which of the following is NOT a feasibility analysis criterion?
Correct : D. resource feasibility
66. IT has impacts as
Correct : D. all of the above
67. A centralised system keeps decision making firmly at the top of the hierarchy
Correct : A. true
68. Centralised IT management system best suited for
Correct : A. small sized organization
69. Decentralised IT management system best suited for
Correct : B. large sized organization
70. Centralised IT management system has
Correct : A. inadequate control over the organization
71. Decentralised IT management system has
Correct : B. considerable control over the organization
72. Information systems support an organization's business operations, managerial decision making and strategic competitive advantage. Such system is called
Correct : D. roles of information systems
73. The document listing all procedure and regulations that generally govern an organization is the
Correct : D. organization manual
74. Centralised IT management system has
Correct : A. vertical communication flow
75. Decentralised IT management system has
Correct : B. open tree communication flow
76. Advantage of Centralised IT management system is
Correct : A. proper coordination and leadership
77. Advantage of Decentralised IT management system is
Correct : B. sharing of burden and responsibility
78. In Centralised IT management system, power of decision making:
Correct : A. lies with top management
79. In Deentralised IT management system, power of decision making:
Correct : B. multiple person have the power
80. In Centralised IT management system decision making is
Correct : B. slow
81. In Dentralised IT management system decision making is
Correct : A. comparatively faster
82. Standardisation implies that all components, physical and software ,which are used to create the IT infrastructure across the organization
Correct : A. are of same type and follow the same standard.
83. Virus is a
Correct : B. piece of code that attaches itself to legitimate program
84. Worm is a
Correct : A. malicious program that spreads automatically
85. Virus:
Correct : C. both a and b
86. Worm:
Correct : A. doesn\t modifies the code
87. The IT infrastructure consists of broad categories of components:
Correct : D. all of the above
88. To enable a secure IS infrastructure in an organisation, the following features are important:
Correct : D. all of the above
89. RFID stands for
Correct : B. radio frequency identification
90. NMEICT stands for:
Correct : A. national mission on education through ict
91. In a Computer a byte generally consists of:
Correct : B. (2) 8 bits
92. Which of the following is not an input device?
Correct : D. (4) monitor
93. Which of the following is an open source software?
Correct : C. (3) mozilla firefox
94. Which of the following enables us to send the same letter to different persons in MS Word?
Correct : D. (4) mail merge
95. If the binary equivalent of the decimal number 48 is 110000, then the binary equivalent of the decimal number 51 is given by
Correct : A. (1) 110011
96. The process of copying files to a CD-ROM is known as
Correct : A. (1) burning
97. An unsolicited e-mail message sent to many recipients at once is a
Correct : D. (4) spam
98. _________ is a type of memory circuitry that holds the computer’s start-up routine.
Correct : C. (3) rom (read only memory)
99. With regard to a word processing software, the process of combining static information in a publication together with variable information in a data source to create one merged publication is called
Correct : C. (3) mail merge
100. DVD technology uses an optical media to store the digital data. DVD is an acronym for