1. Computer Science Engineering (CSE)
  2. Information systems and engineering econ...
  3. Set 3

Information systems and engineering economics Solved MCQs

201.

Which of the following statements is correct?

A. the reason why the u.s. congress allows business to use macrs depreciation as opposed to conventional methods is to reduce the business tax burden over the project life.
B. under the declining balance depreciation system, it is always desirable to switch to straight line depreciation.
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.
D. the main reason why a typical firm may use a straight line depreciation method in reporting an income to outside investors (as opposed to any other accelerated tax depreciation methods) is to abide by the accounting principle— that is to report the true cost of doing business
Answer» 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.
202.

Which of the following statements is correct?

A. over a project’s life, a typical business will generate a greater amount of total project cash flows (undiscounted) if a faster depreciation method is adopted.
B. no matter which depreciation method you adopt, total tax obligations over a project’s life remain unchanged.
C. depreciation recapture equals cost basis minus an asset’s book value at the time of disposal, that is, if the salvage value is less than the asset’s cost basis.
D. cash flows normally include depreciation expenses since they represent a cost of doing business.
Answer» B. no matter which depreciation method you adopt, total tax obligations over a project’s life remain unchanged.
203.

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?

A. 8640
B. 5760
C. 10368
D. 11520
Answer» B. 5760
204.

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.

A. both corporations will pay the same amount of income taxes in year 1.
B. both corporations will have the same amount of net cash flows in year 1.
C. ajax corporation will have a larger net cash flow than gilbert in year 1.
D. gilbert corporation will have a larger taxable income than ajax corporation in year 1.
Answer» C. ajax corporation will have a larger net cash flow than gilbert in year 1.
205.

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.

A. 0.1875
B. 0.1731
C. 0.25
D. 0.15
Answer» B. 0.1731
206.

What effect would have on the break-even point and expected profit if there is an increase in fixed cost?

A. (decrease, decrease)
B. (increase, decrease)
C. (increase, increase)
D. (decrease, decrease)
Answer» B. (increase, decrease)
207.

What effect would have on the break-even point and expected profit if there is an increase in labor cost?

A. (decrease, decrease)
B. (decrease, decrease)
C. (increase, decrease)
D. (increase, increase)
Answer» C. (increase, decrease)
208.

What effect would have on the break-even point and expected profit if there is an increase in unit price?

A. (increase, decrease)
B. (decrease, decrease)
C. (increase, increase)
D. (decrease, increase)
Answer» B. (decrease, decrease)
209.

What effect would have on the break-even point and expected profit if there is an increase in financing cost?

A. (decrease, decrease)
B. (increase, decrease)
C. (increase, increase)
D. (decrease, increase)
Answer» B. (increase, decrease)
210.

What effect would have on the break-even point and expected profit if there is an increase in sales expense?

A. (increase, increase)
B. (decrease, decrease)
C. (increase, decrease)
D. (decrease, decrease)
Answer» C. (increase, decrease)
211.

Mistakes made in the system analysis stage show up in

A. system design
B. system development
C. implementation
D. all of the above
Answer» C. implementation
212.

The everyday tasks of management include:

A. planning and creativity
B. planning and leading
C. publicity and loss adjustment
D. plotting and leading
Answer» B. planning and leading
213.

Studying the future and arranging the means for dealing with it is part of the process of

A. organising
B. controlling
C. commanding
D. planning
Answer» D. planning
214.

Bureaucracy theory means

A. the development of management functions and administrative principles
B. a scientific study of work
C. a hierarchy of command based on a rational-legal authority structure
D. a shared responsibility of authority and delegation
Answer» C. a hierarchy of command based on a rational-legal authority structure
215.

An in depth study on a single organisation using a variety of data collection methods is known as

A. case study
B. field survey
C. field experiment
D. laboratory experiment
Answer» A. case study
216.

The method of research that gathers data about perceptions, feelings, opinions through interviews and questionnaires in their actual work setting is known as

A. case study
B. field survey
C. field experiment
D. laboratory experiment
Answer» B. field survey
217.

The consistency of data obtained from a particular research method is known as

A. reliability
B. validity
C. credibility
D. casuality
Answer» A. reliability
218.

The degree to which a research method actually measures what it is supposed to measure is known as

A. reliability
B. validity
C. credibility
D. casuality
Answer» B. validity
219.

Managing the human resource is

A. the smallest department in an organisation
B. better managed outside the organisation
C. vital for the success of an organisation
D. an unnecessary expense
Answer» C. vital for the success of an organisation
220.

A method of helping is to understand management and organisational behaviour is to look at _________ that has been done before

A. experiments
B. research
C. management
D. behaviour
Answer» B. research
221.

Impersonal treatment of people through consistent application of rules and decisions to prevent favouritism is part of

A. equity theory
B. motivation theory
C. leadership theory
D. bureaucracy theory
Answer» D. bureaucracy theory
222.

People who work in the Human resource department should have a knowledge of

A. organisational behaviour
B. finance
C. it
D. marketing
Answer» A. organisational behaviour
223.

What must entrepreneurs and leaders learn in order to have a successful organisation?

A. how to control people and manipulate organisational systems
B. how to think strategically, influence people, develop organisational systems
C. how to manage technical details and use current business jargon
D. how to read balance sheets and income statements.
Answer» B. how to think strategically, influence people, develop organisational systems
224.

Organisational success in providing a service or a product depends on

A. doing product development faster than anyone else
B. being the cheapest in the market
C. having the first product or service in the market place
D. the product or service being valued by a segment of society
Answer» D. the product or service being valued by a segment of society
225.

An organisation's mission is

A. the fundamental purpose of an organisation
B. articulated in such a way that it defines the business of the enterprise
C. a concept for unifying the efforts of organisational members
D. all of the above
Answer» D. all of the above
226.

Which must be accomplished first by the entrepreneur or leader?

A. the design of a rational organisation structure
B. generating profits
C. making viable the concept for which the organisation was founded
D. establishing policies that assure consistency of activities
Answer» C. making viable the concept for which the organisation was founded
227.

Definable groups of people who have an economic and/or social interest in the organisation are called

A. stakeholders
B. employees
C. managers
D. all of the above
Answer» A. stakeholders
228.

Governance policies, rules, as well as authority structures apply to which key resource element of the organisation?

A. technology
B. organisational culture
C. organisation
D. people
Answer» C. organisation
229.

Productivity is a ratio of outputs (products or services) to ____________.

A. profits generated
B. sales price
C. inputs consumed
D. behaviour effectiveness
Answer» C. inputs consumed
230.

"Doing the right things" is referred to as ____________.

A. effectiveness
B. efficiency
C. productivity
D. profitability
Answer» A. effectiveness
231.

Revitalization involves ________ the strategies, resources, technology, and skills of the organisation.

A. focusing
B. categorizing
C. formalizing
D. renewing
Answer» D. renewing
232.

What is the relationship between satisfaction and productivity, as suggested by research?

A. high satisfaction leads to high productivity
B. productivity does not influence satisfaction
C. moderate satisfaction results in low productivity
D. productivity often leads to satisfaction
Answer» D. productivity often leads to satisfaction
233.

Satisfaction is defined as positive feelings people have about an organisation whether as a/an

A. supplier, employee, customer, or regulator
B. employer, customer, regulator, or supplier
C. investor or stockbroker
D. none of the above
Answer» A. supplier, employee, customer, or regulator
234.

Management is the practice of

A. recruiting and motivating talented people to work for your organisation
B. increasing a firm\s revenues and cutting costs to maximize profits
C. directing, organizing, and developing people, technology, and financial resources
D. mastering political behaviours so that the fittest survive and rise to the top
Answer» C. directing, organizing, and developing people, technology, and financial resources
235.

Managers are typically integrators of

A. people
B. task
C. technology
D. all of the above
Answer» D. all of the above
236.

Productivity ultimately depends on both

A. efficiency and effectiveness
B. infrastructure and culture
C. people and money
D. satisfaction and revitalization
Answer» A. efficiency and effectiveness
237.

What is planning?

A. the process of establishing objectives and specifying how they are to be accomplished in an uncertain future
B. the process of evaluating whether outcomes match objectives and, if not, taking corrective action
C. the pattern of managing actions that focus resources and core competence on achieving a sustained competitive advantage
D. determining a workable fit between organisational competencies and limitations on the one hand and opportunities and threats on the other
Answer» A. the process of establishing objectives and specifying how they are to be accomplished in an uncertain future
238.

What is the process of managerial control or controlling?

A. the process of establishing objectives and specifying how they are to be accomplished in an uncertain future
B. the process of evaluating whether outcomes match objectives and, if not, taking corrective action
C. the pattern of managing actions that focus resources and core competence on achieving a sustained competitive advantage
D. determining a workable fit between organisational competencies and limitations on the one hand and opportunities and threats on the other
Answer» B. the process of evaluating whether outcomes match objectives and, if not, taking corrective action
239.

What is competitive strategy?

A. the process of establishing objectives and specifying how they are to be accomplished in an uncertain future
B. the process of evaluating whether outcomes match objectives and, if not, taking corrective action
C. the pattern of managing actions that focus resources and core competence on achieving a sustained competitive advantage
D. planning actions at the line of business level about where and how to compete
Answer» D. planning actions at the line of business level about where and how to compete
240.

The process of strategic thinking most involves what?

A. the process of establishing objectives and specifying how they are to be accomplished in an uncertain future
B. the process of evaluating whether outcomes match objectives and, if not, taking corrective action
C. the pattern of managing actions that focus resources and core competence on achieving a sustained competitive advantage
D. determining a workable fit between organisational competencies and limitations on the one hand and opportunities and threats on the other
Answer» D. determining a workable fit between organisational competencies and limitations on the one hand and opportunities and threats on the other
241.

At what organisational level is it necessary to balance strategic actions with environmental and resource conditions?

A. departmental
B. middle management
C. corporate
D. all of the above
Answer» D. all of the above
242.

When setting key objectives, managers first seek to articulate

A. results that will achieve the earnings per share target of the external market analysts
B. results that can be achieved with modest commitment of incremental resources
C. mission consistent measurable results to be achieved within a specified future time frame
D. sales forecasts that will generate sufficient revenue to increase global market share
Answer» C. mission consistent measurable results to be achieved within a specified future time frame
243.

Managing strategy involves the craft of

A. deciding on bold courses of action that pulls the enterprise in new directions
B. balancing stability and consistency over time with changes when needed
C. defending established products to make it difficult for rivals to imitate
D. stimulating the creativity of managers and engineers to improve
Answer» B. balancing stability and consistency over time with changes when needed
244.

An organisation's plans are usually most specific at what level?

A. the top
B. the middle
C. the bottom
D. they should be essentially equal in specificity at all levels of the organisation
Answer» D. they should be essentially equal in specificity at all levels of the organisation
245.

When control systems are used to their fullest, they

A. catch individuals who are inefficient
B. lead to continuous improvement
C. produce conformity to standards
D. provide merit rewards for high performers
Answer» B. lead to continuous improvement
246.

operational decisions are

A. decision made by managers that have a medium term scope
B. based on aggregate data and impact the activities for the medium term that could range from the next few days/weeks/months
C. both a and b
D. none of the above
Answer» C. both a and b
247.

Types of Communication are

A. synchronous and asynchronous communication
B. simplex communication
C. full duplex and half duplex communication
D. all of the above
Answer» D. all of the above
248.

FOIS stands for

A. freight operation information system
B. fixed operation information system
C. first operation information system
D. none of the above
Answer» A. freight operation information system
249.

CMS stands for

A. client management system
B. crew management system
C. customer management system
D. none of the above
Answer» B. crew management system
250.

ICMS stands for

A. international coaching management system
B. internal coaching management system
C. integrated coaching management system
D. none of the above
Answer» C. integrated coaching management system
251.

Management information systems (MIS)

A. create and share documents that support day-today office activities
B. process business transactions (e.g., time cards, payments, orders, etc.)
C. capture and reproduce the knowledge of an expert problem solver
D. use the transaction data to produce information needed by managers to run the business
Answer» D. use the transaction data to produce information needed by managers to run the business
252.

The term used to describe those people whose jobs involve sponsoring and funding the project to develop, operate, and maintain the information system is

A. information worker
B. internal system user
C. systems owner
D. external system user
Answer» C. systems owner
253.

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

A. crm
B. intranet
C. erp
D. extranet
Answer» B. intranet
254.

Which of the following is not a technology driver for an information system?

A. enterprise applications
B. object technologies
C. knowledge asset management
D. collaborative technologies
Answer» C. knowledge asset management
255.

Which of the following is a deliverable of the system implementation phase in a formal system development process?

A. technical hardware and software solution for the business problem
B. business problem statement
C. statement of the system users’ business requirements
D. none of the above
Answer» A. technical hardware and software solution for the business problem
256.

When a bank offers web self-service for customers to answer their questions, the primary outcome is:

A. adds value
B. manages risks
C. reduces costs
D. none of the above
Answer» C. reduces costs
257.

The general transformation cycle for information is:

A. information to data to knowledge
B. data to information to knowledge
C. knowledge to data to information
D. none of the above
Answer» B. data to information to knowledge
258.

The most important attribute of information quality that a manager requires is:

A. relevance
B. media
C. presentation
D. none of the above
Answer» A. relevance
259.

To improve the performance of a business process, which of the following is most relevant?

A. input
B. processing
C. control and feedback
D. all of the above
Answer» C. control and feedback
260.

The majority of publically available Internet information sources are:

A. created in xml
B. structured information
C. normal information
D. unstructured information
Answer» D. unstructured information
261.

Which of the following statements describes a taxonomy?

A. a browsable hierarchy
B. a list of equivalent terms
C. a complex controlled vocabulary showing relationships
Answer» A. a browsable hierarchy
262.

Information systems that support the business functions that reach out to suppliers are known as:

A. back office information systems
B. expert information systems
C. front office information systems
D. none of the above
Answer» A. back office information systems
263.

Which is not a typical business function?

A. manufacturing
B. benefits and compensation
C. sales
D. services
Answer» B. benefits and compensation
264.

Project Management ensures that

A. project’s risk is assessed
B. project’s feasibility is assessed
C. system is developed at minimum cost
D. both a and b
Answer» C. system is developed at minimum cost
265.

Which of the following is NOT a feasibility analysis criterion?

A. technical feasibility
B. schedule feasibility
C. economic feasibility
D. resource feasibility
Answer» D. resource feasibility
266.

IT has impacts as

A. first order
B. second order
C. third order
D. all of the above
Answer» D. all of the above
267.

A centralised system keeps decision making firmly at the top of the hierarchy

A. true
B. false
C. not applicable
D. don’t know
Answer» A. true
268.

Centralised IT management system best suited for

A. small sized organization
B. large sized organization
C. all of the above
D. none of the above
Answer» A. small sized organization
269.

Decentralised IT management system best suited for

A. small sized organization
B. large sized organization
C. all of the above
D. none of the above
Answer» B. large sized organization
270.

Centralised IT management system has

A. inadequate control over the organization
B. considerable control over the organization
C. all of the above
D. none of the above
Answer» A. inadequate control over the organization
271.

Decentralised IT management system has

A. inadequate control over the organization
B. considerable control over the organization
C. all of the above
D. none of the above
Answer» B. considerable control over the organization
272.

Information systems support an organization's business operations, managerial decision making and strategic competitive advantage. Such system is called

A. business process reengineering
B. competitive advantage
C. competitive advantage
D. roles of information systems
Answer» D. roles of information systems
273.

The document listing all procedure and regulations that generally govern an organization is the

A. administrative policy manual
B. personal policy book
C. procedures log
D. organization manual
Answer» D. organization manual
274.

Centralised IT management system has

A. vertical communication flow
B. open tree communication flow
C. normal communication flow
D. none of the above
Answer» A. vertical communication flow
275.

Decentralised IT management system has

A. vertical communication flow
B. open tree communication flow
C. normal communication flow
D. none of the above
Answer» B. open tree communication flow
276.

Advantage of Centralised IT management system is

A. proper coordination and leadership
B. sharing of burden and responsibility
C. no advantage
D. none of the above
Answer» A. proper coordination and leadership
277.

Advantage of Decentralised IT management system is

A. proper coordination and leadership
B. sharing of burden and responsibility
C. no advantage
D. none of the above
Answer» B. sharing of burden and responsibility
278.

In Centralised IT management system, power of decision making:

A. lies with top management
B. multiple person have the power
C. employee has the power
D. none of the above
Answer» A. lies with top management
279.

In Deentralised IT management system, power of decision making:

A. lies with top management
B. multiple person have the power
C. employee has the power
D. none of the above
Answer» B. multiple person have the power
280.

In Centralised IT management system decision making is

A. comparatively faster
B. slow
C. very fast
D. all of the above
Answer» B. slow
281.

In Dentralised IT management system decision making is

A. comparatively faster
B. slow
C. very fast
D. all of the above
Answer» A. comparatively faster
282.

Standardisation implies that all components, physical and software ,which are used to create the IT infrastructure across the organization

A. are of same type and follow the same standard.
B. are of different type and follow the different standard.
C. are of same type but follow the different standard.
D. none of the above
Answer» A. are of same type and follow the same standard.
283.

Virus is a

A. malicious program that spreads automatically
B. piece of code that attaches itself to legitimate program
C. both a and b
D. none of the above
Answer» B. piece of code that attaches itself to legitimate program
284.

Worm is a

A. malicious program that spreads automatically
B. piece of code that attaches itself to legitimate program
C. both a and b
D. none of the above
Answer» A. malicious program that spreads automatically
285.

Virus:

A. modifies the code
B. destructive in a nature
C. both a and b
D. replicate itself
Answer» C. both a and b
286.

Worm:

A. doesn\t modifies the code
B. doesn\t replicate itself
C. both a and b
D. destructive in a nature
Answer» A. doesn\t modifies the code
287.

—The IT infrastructure consists of broad categories of components:

A. hardware
B. software
C. networks
D. all of the above
Answer» D. all of the above
288.

To enable a secure IS infrastructure in an organisation, the following features are important:

A. confidentiality,authentication
B. message integrity
C. access and availability
D. all of the above
Answer» D. all of the above
289.

RFID stands for

A. random frequency identification
B. radio frequency identification
C. rare frequency identification
D. radio firewall identification
Answer» B. radio frequency identification
view more info and meaning of RFID external link
290.

NMEICT stands for:

A. national mission on education through ict
B. national mission on e-governance through ict
C. national mission on e-commerce through ict
D. national mission on e-learning through ict
Answer» A. national mission on education through ict
291.

In a Computer a byte generally consists of:

A. (1) 4 bits
B. (2) 8 bits
C. (3) 16 bits
D. (4) 10 bits
Answer» B. (2) 8 bits
292.

Which of the following is not an input device?

A. (1) microphone
B. (2) keyboard
C. (3) joystick
D. (4) monitor
Answer» D. (4) monitor
293.

Which of the following is an open source software?

A. (1) ms word
B. (2) windows
C. (3) mozilla firefox
D. (4) acrobat reader
Answer» C. (3) mozilla firefox
294.

Which of the following enables us to send the same letter to different persons in MS Word?

A. (1) mail join
B. (2) mail copy
C. (3) mail insert
D. (4) mail merge
Answer» D. (4) mail merge
295.

If the binary equivalent of the decimal number 48 is 110000, then the binary equivalent of the decimal number 51 is given by

A. (1) 110011
B. (2) 110010
C. (3) 110001
D. (4) 110100
Answer» A. (1) 110011
296.

The process of copying files to a CD-ROM is known as

A. (1) burning
B. (2) zipping
C. (3) digitizing
D. (4) ripping
Answer» A. (1) burning
297.

An unsolicited e-mail message sent to many recipients at once is a

A. (1) worm
B. (2) virus
C. (3) threat
D. (4) spam
Answer» D. (4) spam
298.

_________ is a type of memory circuitry that holds the computer’s start-up routine.

A. (1) rim (read initial memory)
B. (2) ram (random access memory)
C. (3) rom (read only memory)
D. (4) cache memory
Answer» C. (3) rom (read only memory)
299.

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

A. (1) electronic mail
B. (2) data sourcing
C. (3) mail merge
D. (4) spam mail
Answer» C. (3) mail merge
300.

DVD technology uses an optical media to store the digital data. DVD is an acronym for

A. digital vector disc
B. digital volume disc
C. digital versatile disc
D. digital visualization disc
Answer» C. digital versatile disc
Tags
Question and answers in Information systems and engineering economics, Information systems and engineering economics multiple choice questions and answers, Information systems and engineering economics Important MCQs, Solved MCQs for Information systems and engineering economics, Information systems and engineering economics MCQs with answers PDF download