1. The "sacred cow" refers to a project suggested by a powerful, senior official in the organization. T/F

2. Information required to evaluate a project is most often categorized as:
a. Production
b. Administrative
c. Personnel
d. a&b
e. All of the above.

3. According to Souder, the most important criteria that a firm should use in choosing a project selection model are:
a. realism and cost.
b. flexibility and cost.
c. capability and ease of use.
d. all of the above.
e. none of the above.

4. The two basic types of project selection models are:
a. qualitative and quantitative.
b. numeric and non-numeric.
c. optimal and descriptive.
d. single and multiple factor.
e. none of the above.

5. The process of evaluating a potential project:
a. should be minimized in both time and cost.
b. should focus primarily on the issues of profitability and payback.
c. is a time-consuming and difficult activity, the importance of which cannot be overstated.
d. is an activity which is best left to project and systems management specialists.
e. none of the above.

6. Meredith and Mantel prefer scoring models because:
a. the models can accommodate multiple objectives.
b. they are adaptable to changing managerial conditions.
c. they do not have a short-run bias.
d. all of the above.
e. none of the above.

7. Which of the following is NOT a numeric model?
a. payback period
b. average rate of return
c. sacred cow
d. discounted cash flow
e. all are numeric models

8. All of the following are advantages of numeric models EXCEPT:
a. undiscounted models are simple to use and understand
b. some models ignore the time value of money
c. all use readily available accounting data to determine cash flows
d. model results are in familiar terms to decision makers
e. all are advantages

9. Scoring models are favored because:
a. they weight all criteria equally
b. they are not biased toward the short run
c. they account for the time value of money
d. they are complex
e. none of the above.

10. When individuals oppose a project, for whatever reason, they commonly complain that the information used to support the project is too "subjective". T/F