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Question 12

The Financial Appraisal includes an estimated 60% taxation costs that are NOT reclaimable.

Is this an appropriate application of the Five Case Model for the project?

Options:

A.

No, because taxation costs should be excluded from the Financial Appraisal.

B.

No, because it is the Economic Case that should include inflation and taxation costs.

C.

Yes, because the Financial Appraisal should demonstrate value for money.

D.

Yes, because both resource and non-resource costs and benefits should be factored into the analysis.

Question 13

Answer the following questions about the actions taken when preparing the Economic Case within the Full Business Case (FBC).

Decide whether the action taken represents an appropriate application of the Five Case Model for this project and select the response that supports your decision.

Since approval of the OBC, there has been an attractive bid for the Old Fire Station Headquarters site by a supermarket company.

The bid is 15% higher than the original amount that the site was valued at.

Should the FBC production be delayed while the ranking of the options in the OBC is reassessed?

Options:

A.

No, because the anticipated benefits will remain the same.

B.

No, because the sale price of the site is an opportunity cost which is irrelevant to the Economic Appraisal.

C.

Yes, because the FBC must be re-submitted for re-approval if the costs vary significantly.

D.

Yes, because the FBC should be based on accurate Economic Appraisals for all options.

Question 14

The Local Education Authority Director has agreed to be the Senior Responsible Owner. Therefore, they are ultimately responsible

for the realization of benefits resulting from the Pittville project.

Should the responsibilities for the benefits realization arrangements be documented in the Economic Case?

Options:

A.

No, because the benefits realization arrangements are finalized in the Management Case.

B.

No, because the benefits realization takes place during the implementation and operational phases of the project.

C.

Yes, because the plan for the delivery of benefits should be documented within the benefits register and attached to the FBC.

D.

Yes, because changes to the benefits should be identified before the FBC Economic Appraisals.

Question 15

Answer the following question about scoping the proposal and preparing the Strategic Outline

Case (SOC) for the Pittville project.

Column 1 is a list of information gathered about the Pittville project. For each entry in Column 1, select

from Column 2 the option that best describes it. Each selection from Column 2 can be used once, more

than once or not at all.

Options:

Page: 3 / 6
Exam Name: Better Business Cases Practitioner Exam
Last Update: Dec 22, 2024
Questions: 95
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