Financial Management Midterm Exam

Applying the concept of analogous estimating, it would be more effective to estimate the cost of developing a new e-commerce website by comparing it to the development of a similar e-commerce site rather than a social media application.

• True
• False

In a scenario where a company is upgrading its network infrastructure, multi-scenario planning would be unnecessary if the upgrade involves replacing equipment with identical models.

• True
• False

Resource-based estimation requires a deeper understanding of the project's scope and deliverables compared to factor estimation.

• True
• False

If a project has a high degree of uncertainty, using expert judgment in conjunction with three-point estimating will likely yield a less accurate cost estimate than relying solely on historical data.

• True
• False

Vendor bid analysis is the most suitable cost estimation technique when determining internal labor costs for a project.

• True
• False

Categorizing costs in IT operations primarily serves the purpose of simplifying expense tracking rather than informing strategic financial decisions.

• True
• False

Allocating funds in IT budgeting involves prioritizing needs and balancing short-term goals with long-term investments.

• True
• False

Monitoring and adjusting an IT budget is a reactive process, only necessary when expenses exceed initial estimates.

• True
• False

When setting financial goals for IT operations, aligning them with the organization's strategic objectives is less important than focusing on minimizing IT expenses.

• True
• False

In IT financial planning, accurately estimating costs is more critical for operational efficiency than for making informed decisions about technology investments.

• True
• False