Data Warehousing Cost-Benefit Analysis

Description: Data Warehousing Cost-Benefit Analysis Quiz
Number of Questions: 15
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Tags: data warehousing cost-benefit analysis
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What is the primary objective of conducting a cost-benefit analysis for a data warehousing project?

  1. To determine the financial feasibility of the project

  2. To assess the technical feasibility of the project

  3. To evaluate the project's impact on business operations

  4. To identify the project's stakeholders


Correct Option: A
Explanation:

The primary objective of a cost-benefit analysis is to determine whether the expected benefits of a data warehousing project outweigh the associated costs.

Which of the following costs is typically NOT included in a data warehousing cost-benefit analysis?

  1. Hardware and software costs

  2. Data acquisition costs

  3. Data integration costs

  4. Data storage costs


Correct Option: B
Explanation:

Data acquisition costs are typically not included in a data warehousing cost-benefit analysis because they are considered to be sunk costs, which are costs that have already been incurred and cannot be recovered.

What is the most common method used to quantify the benefits of a data warehousing project?

  1. Return on investment (ROI)

  2. Net present value (NPV)

  3. Internal rate of return (IRR)

  4. Payback period


Correct Option: A
Explanation:

Return on investment (ROI) is the most common method used to quantify the benefits of a data warehousing project because it provides a simple and straightforward measure of the project's financial performance.

Which of the following factors is NOT typically considered when evaluating the benefits of a data warehousing project?

  1. Improved decision-making

  2. Increased operational efficiency

  3. Enhanced customer satisfaction

  4. Reduced costs


Correct Option: C
Explanation:

Enhanced customer satisfaction is not typically considered when evaluating the benefits of a data warehousing project because it is difficult to quantify and measure.

What is the primary challenge associated with conducting a cost-benefit analysis for a data warehousing project?

  1. Estimating the costs of the project

  2. Estimating the benefits of the project

  3. Identifying the project's stakeholders

  4. Determining the project's scope


Correct Option: B
Explanation:

Estimating the benefits of a data warehousing project is the primary challenge associated with conducting a cost-benefit analysis because the benefits are often difficult to quantify and measure.

Which of the following is NOT a key factor to consider when conducting a cost-benefit analysis for a data warehousing project?

  1. The project's scope

  2. The project's budget

  3. The project's timeline

  4. The project's stakeholders


Correct Option: D
Explanation:

The project's stakeholders are not a key factor to consider when conducting a cost-benefit analysis because they are not directly involved in the financial evaluation of the project.

What is the most important factor to consider when determining the scope of a data warehousing project?

  1. The project's budget

  2. The project's timeline

  3. The project's stakeholders

  4. The project's objectives


Correct Option: D
Explanation:

The project's objectives are the most important factor to consider when determining the scope of a data warehousing project because they define the purpose and goals of the project.

Which of the following is NOT a typical component of a data warehousing cost-benefit analysis?

  1. Hardware and software costs

  2. Data acquisition costs

  3. Data integration costs

  4. Data storage costs


Correct Option: B
Explanation:

Data acquisition costs are typically not included in a data warehousing cost-benefit analysis because they are considered to be sunk costs, which are costs that have already been incurred and cannot be recovered.

What is the most common method used to quantify the costs of a data warehousing project?

  1. Return on investment (ROI)

  2. Net present value (NPV)

  3. Internal rate of return (IRR)

  4. Payback period


Correct Option: D
Explanation:

Payback period is the most common method used to quantify the costs of a data warehousing project because it provides a simple and straightforward measure of the time it takes for the project to generate a positive return on investment.

Which of the following is NOT a typical benefit of a data warehousing project?

  1. Improved decision-making

  2. Increased operational efficiency

  3. Enhanced customer satisfaction

  4. Reduced costs


Correct Option: C
Explanation:

Enhanced customer satisfaction is not a typical benefit of a data warehousing project because it is difficult to quantify and measure.

What is the primary challenge associated with conducting a cost-benefit analysis for a data warehousing project?

  1. Estimating the costs of the project

  2. Estimating the benefits of the project

  3. Identifying the project's stakeholders

  4. Determining the project's scope


Correct Option: B
Explanation:

Estimating the benefits of a data warehousing project is the primary challenge associated with conducting a cost-benefit analysis because the benefits are often difficult to quantify and measure.

Which of the following is NOT a key factor to consider when conducting a cost-benefit analysis for a data warehousing project?

  1. The project's scope

  2. The project's budget

  3. The project's timeline

  4. The project's stakeholders


Correct Option: D
Explanation:

The project's stakeholders are not a key factor to consider when conducting a cost-benefit analysis because they are not directly involved in the financial evaluation of the project.

What is the most important factor to consider when determining the scope of a data warehousing project?

  1. The project's budget

  2. The project's timeline

  3. The project's stakeholders

  4. The project's objectives


Correct Option: D
Explanation:

The project's objectives are the most important factor to consider when determining the scope of a data warehousing project because they define the purpose and goals of the project.

Which of the following is NOT a typical component of a data warehousing cost-benefit analysis?

  1. Hardware and software costs

  2. Data acquisition costs

  3. Data integration costs

  4. Data storage costs


Correct Option: B
Explanation:

Data acquisition costs are typically not included in a data warehousing cost-benefit analysis because they are considered to be sunk costs, which are costs that have already been incurred and cannot be recovered.

What is the most common method used to quantify the costs of a data warehousing project?

  1. Return on investment (ROI)

  2. Net present value (NPV)

  3. Internal rate of return (IRR)

  4. Payback period


Correct Option: D
Explanation:

Payback period is the most common method used to quantify the costs of a data warehousing project because it provides a simple and straightforward measure of the time it takes for the project to generate a positive return on investment.

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