Evaluating the Benefits of IT Projects Is More Complex Than

question 33

Multiple Choice

Evaluating the benefits of IT projects is more complex than evaluating their costs for all of the following reasons except:

• A) Benefits are harder than costs to quantify.
• B) Benefits tend to be more tangible than costs.
• C) IT can be used for several different purposes.
• D) The probability of obtaining a return from an IT investment is based on the probability of implementation success.
• E) The proposed system may be "cutting edge."

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Definitions:

Value-Added Tax (VAT)

A tax on the amount by which the value of an article has been increased at each stage of its production or distribution.

Income Tax

A government levy on individuals' or corporations' earnings.

Marginal Tax Rate

The rate of tax applied to the last dollar of income, indicating how much of any additional income will be taken as tax.

Lump-Sum Tax

A tax that is a set amount, no matter the taxpayer's income level or economic activity.