Chapter 8 The Business of Information Technology Quiz

What is the focus of an immature IT organization at Level 1?

• Business effectiveness

• Cost-Saving

• Value creation

• Business transformation

Who is responsible for technology vision and leadership in an enterprise?

• Chief Technology Officer (CTO)

• Chief Data Officer (CDO)

• Chief Knowledge Officer (CKO)

• Chief Information Officer (CIO)

What is a business case?

• A legal document

• A structured document for decision-making

• A marketing plan

• A financial statement

What are the four asset classes of IT investments in an IT portfolio?

• Financial systems, operational systems, marketing systems, and human resource systems

• Production systems, distribution systems, sales systems, and service systems

• Customer systems, supplier systems, employee systems, and competitor systems

• Transactional systems, infrastructure systems, informational systems, and strategic systems

What is the valuation method that calculates the percentage rate of return on an investment?

• Economic Value Added (EVA)

• Net Present Value (NPV)

• Return on Investment (ROI)

• Payback Period

What is the method that focuses on the organization's value drivers and assesses the impact of corporate strategies?

• Balanced Scorecard

• Activity-Based Costing

• Total Cost of Ownership (TCO)

• Chargeback Funding Method

Which funding method recovers costs by charging individuals, departments, or business units based on actual usage and cost?

• Corporate Budget Funding Method

• Allocation Funding Method

• Chargeback Funding Method

• Activity-Based Costing

What is the costing method that calculates costs by counting the actual activities that go into making a specific product or delivering a specific service?

• Return on Investment (ROI)

• Activity-Based Costing

• Total Cost of Ownership (TCO)

• Payback Period

What is the goal of the three major IT funding approaches?

• To cover the costs of building and maintaining information systems

• To calculate the total system cost

• To allocate costs based on usage

• To generate a profit