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NEW QUESTION # 92
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: D
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.
NEW QUESTION # 93
Which of the following statements in relation to power and interest is true?
Answer: D
Explanation:
The power/interest grid is used to decide the most appropriate stakeholder management approach based on the stakeholder's power/influence and interest. The guidance shows a set of basic strategies, including "Ignore" (low power/low interest), "Keep informed" (high interest/low power), "Keep satisfied" (high power/low interest), and "Constant active management" for those with high power and high interest.
A project sponsor is typically a key decision-maker and champion for the change, usually possessing high influence and a strong stake in success (high interest). Under the documented strategies, stakeholders in that top-right quadrant require constant active management-ongoing engagement, involvement in decisions, and frequent communication-so statement A is true.
Statement B is false because regulators may sometimes fall into a "keep satisfied" profile, but the guidance does not support the idea that they will always sit in a single box; their interest can rise sharply if breaches are suspected. Statement C is false because high power with only "some" interest is managed by keeping satisfied, not merely "watching." Finally, customers are explicitly identified as stakeholders and cannot be "always ignored."
NEW QUESTION # 94
The following planning activity has been identified in a consensus BAM for a company that makes clothes:
'P4 - Define marketing strategy'
Which of the following is an enabling activity linked to this planning activity?
Answer: B
Explanation:
An enabling activity is an activity that supports or facilitates another activity within a business activity model. It helps to ensure that another activity can be performed or delivered effectively and efficiently. Therefore, option B is the correct answer, as it is an enabling activity linked to this planning activity. Define sales targets is an enabling activity linked to this planning activity, as it supports or facilitates defining marketing strategy. It helps to ensure that marketing strategy can be aligned with sales objectives and outcomes. Option A is not a correct answer, as it is not an enabling activity linked to this planning activity, but a monitoring and control activity. Monitor sales is a monitoring and control activity that measures or evaluates another activity within a business activity model. It helps to ensure that another activity meets quality and performance standards and criteria. Option C is not a correct answer, as it is not an enabling activity linked to this planning activity, but a doing activity. Advertise clothes is a doing activity that produces or delivers value or satisfaction for customers within a business activity model. It helps to achieve customer demand and satisfaction for products or services. Option D is not a correct answer, as it is not an enabling activity linked to this planning activity, but a doing activity. Sell clothes is a doing activity that produces or delivers value or satisfaction for customers within a business activity model. It helps to achieve customer demand and satisfaction for products or services.
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: B
Explanation:
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.
References: BCS Practitioner Certificate in BAP Specimen,
NEW QUESTION # 96
A business analyst is reviewing the stakeholder management strategy for a project seeking to implement a new IT system to monitor the effectiveness of social work interventions. Three stakeholders have been identified.
1. Head of Monitoring and Evaluation is the project sponsor
2. The monitoring and evaluation officer working in the Head of Monitoring and Evaluation's team who is eager to get the project implemented as it will transform his role
3 The financial accountant assigned to the project to monitor the financial benefits of the new system This role is essential to the project, but he isn't interested in the detail.
The analyst has identified stakeholder management strategies for two of the three stakeholders 'active and constant management' and 'keep onside' Based on the information presented in the scenario, which further strategy is required?
Answer: B
Explanation:
Explanation
A stakeholder management strategy is a plan for engaging and communicating with stakeholders based on their level of power and interest in an organisation or project. It helps to ensure that stakeholders are appropriately involved and informed throughout the organisation's or project's lifecycle. Therefore, option A is the correct answer, as keep satisfied is the further strategy that is required for one of the three stakeholders in this scenario. Keep satisfied is the strategy for managing stakeholders who have high power but low interest in an organisation or project. It involves meeting their needs and expectations without over-communicating or over-involving them. The stakeholder who requires this strategy in this scenario is the financial accountant assigned to the project to monitor the financial benefits of the new system. This stakeholder has high power, as he is essential to the project and can influence its outcome. However, he has low interest, as he is not interested in the detail of the project. Option B is not a correct answer, as watch is not the further strategy that is required for any of the three stakeholders in this scenario. Watch is the strategy for managing stakeholders who have low power and low interest in an organisation or project. It involves monitoring their behaviour and attitude without engaging or communicating with them too much. None of the stakeholders in this scenario have low power and low interest, as they are all involved or affected by the project in some way. Option C is not a correct answer, as ignore is not a valid strategy for managing any stakeholder in an organisation or project. Ignore is the strategy of disregarding or neglecting stakeholders who have no power or interest in an organisation or project. It involves excluding them from any engagement or communication activities. This strategy is not advisable, as it may lead to stakeholder dissatisfaction, resentment or resistance. Option D is not a correct answer, as keep informed is not the further strategy that is required for any of the three stakeholders in this scenario. Keep informed is the strategy for managing stakeholders who have low power but high interest in an organisation or project. It involves providing them with regular and sufficient information and updates without overloading them with details. None of the stakeholders in this scenario have low power but high interest, as they are all involved or affected by the project in some way.
References: BCS Practitioner Certificate in BAP Specimen, page 40.
NEW QUESTION # 97
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