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NEW QUESTION # 94
A business case is being created for a new. automated auditing system that will improve the IT department's ability to record and monitor all the computing devices used across the organisation The sponsor of the project is keen to get a better idea of the financial implications of the project and has asked for the simplest calculation possible This calculation should consider the tangible costs and tangible benefits of the project, as well as showing when it will have saved the department as much money as it has cost.
Which of the following investment appraisal calculations has the sponsor asked for?
Answer: A
Explanation:
Explanation
An investment appraisal calculation is a technique for assessing whether a proposed business change or solution is financially viable and worthwhile. It helps to compare the costs and benefits of different options and select the best one based on objective criteria. There are different types of investment appraisal calculations, such as payback calculation, net present value, internal rate of return and discounted cash flow.
Therefore, option A is the correct answer, as payback calculation is the simplest investment appraisal calculation that considers the tangible costs and benefits of a project, as well as showing when it will have saved as much money as it has cost. Payback calculation measures how long it will take for a project to recover its initial investment by comparing its cumulative cash inflows with its cumulative cash outflows over time. It helps to show how quickly a project will break even or generate profit. Option B is not a correct answer, as net present value is not the simplest investment appraisal calculation that considers only tangible costs and benefits. Net present value measures how much value a project will add or subtract from an organisation by comparing its present value of cash inflows with its present value of cash outflows over time.
It helps to show how profitable a project will be in today's terms. Net present value requires discounting future cash flows using an appropriate discount rate, which adds complexity to the calculation. Option C is not a correct answer, as internal rate of return is not the simplest investment appraisal calculation that considers only tangible costs and benefits. Internal rate of return measures how efficient a project is by calculating its annualised effective compounded return rate or rate of growth over time. It helps to show how attractive a project is compared to other investment opportunities. Internal rate of return requires finding an unknown discount rate that makes net present value equal to zero, which adds complexity to the calculation. Option D is not a correct answer, as discounted cash flow is not an investment appraisal calculation itself, but a method for estimating future cash flows by applying an appropriate discount rate to reflect their present value. Discounted cash flow can be used in other investment appraisal calculations, such as net present value or internal rate of return.
References: BCS Practitioner Certificate in BAP Specimen, page 31.
NEW QUESTION # 95
A business case features a management summary, from which the below extract is taken:
'The new approach will incur significant investment in terms of software licenses and annual maintenance fees, which will not be negotiable until year four of the proposal. We will research competing suppliers in the marketplace at end of year three, the supplier will, therefore, be likely to otter a reduced price for year five and beyond. However, we are convinced that the selected option is the right one. It will give us a competitive edge as a result of improved management information, in addition to the boost it will give to our image with our established customers." Which categories of costs and benefits are described in this extract*?
Answer: A
Explanation:
A business case is a formal written proposal that details the costs and benefits of a proposed business change or solution. It helps to justify and secure the approval and funding for a proposed business change or solution. Costs and benefits can be classified into two types: tangible and intangible. Therefore, option D is the correct answer, as it identifies which categories of costs and benefits are described in this extract respectively. Intangible costs are costs that have no physical existence and cannot be measured or quantified easily by human senses. Examples of intangible costs are reputation, image, morale etc. An example of intangible costs in this extract is significant investment in terms of software licenses and annual maintenance fees, which will not be negotiable until year four of the proposal, as it has no physical existence and cannot be measured or quantified easily by human senses. Tangible benefits are benefits that have physical existence and can be measured or quantified easily by human senses. Examples of tangible benefits are revenue, profit, market share etc. An example of tangible benefits in this extract is improved management information, in addition to the boost it will give to our image with our established customers, as it has physical existence and can be measured or quantified easily by human senses. Option A is not a correct answer, as it does not identify which categories of costs and benefits are described in this extract respectively. Tangible costs are costs that have physical existence and can be measured or quantified easily by human senses. Examples of tangible costs are equipment, materials, labour etc. There is no example of tangible costs in this extract. Intangible benefits are benefits that have no physical existence and cannot be measured or quantified easily by human senses. Examples of intangible benefits are satisfaction, loyalty, quality etc. There is no example of intangible benefits in this extract (although image could be considered as an intangible benefit). Option B is not a correct answer, as it does not identify which categories of costs and benefits are described in this extract respectively. Tangible benefits are benefits that have physical existence and can be measured or quantified easily by human senses. Examples of tangible benefits are revenue, profit, market share etc. An example of tangible benefits in this extract is improved management information, in addition to the boost it will give to our image with our established customers, as it has physical existence and can be measured or quantified easily by human senses. Intangible costs are costs that have no physical existence and cannot be measured or quantified easily by human senses. Examples of intangible costs are reputation, image, morale etc. An example of intangible costs in this extract is significant investment in terms of software licenses and annual maintenance fees, which will not be negotiable until year four of the proposal, as it has no physical existence and cannot be measured or quantified easily by human senses. Option C is not a correct answer, as it does not identify any category of cost or benefit that has been described in this extract.
NEW QUESTION # 96
ForestRetreat organises events in national forests and woodland, including log cabin accommodation and transport. It has recently purchased a new woodland plot and plans to offer events there in the summer, but there is much to do in preparation. A local builder has been commissioned to construct the log cabins. A volunteer organisation will work with ForestRetreat to provide transport for customers who are attending the events. The senior officer for the south east region of ForestRetreat has been asked to oversee the development of the new woodland plot.
Which stakeholder group is not represented in this scenario?
Answer: D
Explanation:
The business analysis documentation distinguishes stakeholder categories and provides examples including customers, employees, managers, partners, suppliers, and others. The scenario clearly includes a supplier: the local builder is providing goods/services (construction) to ForestRetreat, which fits the definition of a supplier. It also includes a partner: the volunteer organisation is "working with" ForestRetreat to provide transport on its behalf, which aligns with the definition of partners as organisations that work with an organisation to provide services on its behalf.
A manager is represented by the senior officer who has been asked to oversee development of the new plot. The glossary explicitly lists managers as a distinct stakeholder category, separate from employees. While managers are employees in a general HR sense, the stakeholder categorisation used here treats managers and employees as separate groups because they often have different interests, influence, and perspectives on change.
What is not represented is the employee stakeholder group (non-managerial staff). No operational staff, event staff, customer service staff, or other employees are mentioned-only a manager (senior officer). Therefore, the missing stakeholder group from the options is Employee.
NEW QUESTION # 97
A business analyst working for a small organisation has identified a specific pain point.
* They develop 3 possible solutions that can be piloted.
* They conduct workshops to capture feedback related to the pilots.
* They use the Double Diamond model as part of the design process.
Which of the following stages of Design Thinking is present in the bullet points?
Answer: C
Explanation:
The bullet points describe taking candidate solutions and testing them, then collecting feedback to learn and decide what to do next. In design and change approaches, that is the essence of evaluation: trialling options (pilots) and assessing their suitability using stakeholder input and evidence.
The business analysis guidance places this kind of work in the "evaluate options / evaluate solution" part of the lifecycle: after a need is understood and options are generated, the next step is to assess them by considering feasibility, benefits, impacts, and risks, using structured stakeholder engagement such as workshops. Workshops are explicitly identified as an investigation technique used to gather and validate information collaboratively, which fits "workshops to capture feedback" from pilots.
Within a Double Diamond-style design process, developing multiple pilot solutions aligns with exploring the solution space, and then running pilots and gathering feedback aligns with converging by evaluating what works in practice and what should be refined, scaled, or discarded. That activity is best represented by Evaluate rather than Empathise (understanding users), Define (clarifying the problem), or Create (generating ideas without yet testing them).
Therefore, the stage present in the bullet points is Evaluate (Option C).
NEW QUESTION # 98
Adiyan has been considering the feasibility of introducing a new payments method into his company His draft report reads
'The new payment method has not yet been widely adopted although it has the backing of all the big phone brands. Our current payments system will be upgraded next month to take payment as part of a scheduled release This method of payment will be supported under our current license deal Trials have shown that the technology will scale to our customer base and cyber security testing is encouraging' Which of the following is the BEST description of the areas of Technical feasibility mentioned in the report?
Answer: D
Explanation:
Explanation
Technical feasibility is the extent to which a proposed business change or solution is possible and realistic from a technical perspective. It helps to assess whether a proposed business change or solution can be developed, implemented and maintained using the available or required technology. Therefore, option A is the correct answer, as it describes the areas of technical feasibility mentioned in the report. Proven is an area of technical feasibility that relates to whether the technology used for the proposed business change or solution has been tested and verified by previous or existing users or applications. It helps to ensure reliability and quality of the technology. An example of proven in the report is the new payment method has not yet been widely adopted although it has the backing of all the big phone brands. Compatible is an area of technical feasibility that relates to whether the technology used for the proposed business change or solution can work or integrate with other existing or required technologies. It helps to ensure interoperability and functionality of the technology. An example of compatible in the report is our current payments system will be upgraded next month to take payment as part of a scheduled release. Secure is an area of technical feasibility that relates to whether the technology used for the proposed business change or solution can protect or prevent unauthorised access, use, modification or disclosure of data or information. It helps to ensure confidentiality, integrity and availability of the technology. An example of secure in the report is cyber security testing is encouraging.
Scalable is an area of technical feasibility that relates to whether the technology used for the proposed business change or solution can handle or adapt to changes in demand, volume or performance. It helps to ensure efficiency and flexibility of the technology. An example of scalable in the report is trials have shown that the technology will scale to our customer base. Option B is not a correct answer, as it does not describe all the areas of technical feasibility mentioned in the report. Timely is an area of technical feasibility that relates to whether the technology used for the proposed business change or solution can be developed, implemented and maintained within the available or required time frame. It helps to ensure punctuality and speed of the technology. There is no example of timely in the report. Option C is not a correct answer, as it does not describe all the areas of technical feasibility mentioned in the report. Reliable is an area of technical feasibility that relates to whether the technology used for the proposed business change or solution can perform consistently and accurately without errors or failures. It helps to ensure dependability and accuracy of the technology. There is no example of reliable in the report. Architectural alignment is an area of technical feasibility that relates to whether the technology used for the proposed business change or solution can fit or align with other existing or required architectures, such as business, data or application architectures. It helps to ensure consistency and coherence of the technology. There is no example of architectural alignment in the report. Option D is not a correct answer, as it does not describe any of the areas of technical feasibility mentioned in the report.
References: BCS Practitioner Certificate in BAP Specimen, page 48.
NEW QUESTION # 99
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