If the Project Team and Organizational Officials Reassess the Project

question 49

Multiple Choice

If the project team and organizational officials reassess the project after each subsequent SDLC phase to determine if the business conditions have changed or if a more detailed understanding of a system's costs, benefits, and risks suggest that the project is not as worthy as previously thought, they are:

• A) adhering to the incremental commitment principle.
• B) overly cautious.
• C) using a CASE methodology.
• D) adhering to a bottom-up commitment principle.
• E) using a staged approach to systems development.

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Definitions:

Product-level Activity

Activities and costs associated with a specific product, rather than with the entire business operation.

Activity-based Costing

A method of allocating indirect costs to products or services based on the activities that generate those costs.

Allocation Rate

A ratio or rate used to distribute overhead or indirect costs to various cost objects based on relevant criteria.

Setups

The preparation and adjustment processes required to make equipment ready for production or to switch production from one item to another, often involving significant time and cost.