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APMG-International Better-Business-Cases-Practitioner Dumps

Better Business Cases Practitioner Exam Questions and Answers

Question 1

Using the Scenario and the extract below from the Revenue Budget for the Pittville project, answer the following

questions. (Note. The figures entered are correct).

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Which 2 observations correctly evaluate the Expenditure?

Options:

A.

The cost of building the new campus should be included in this table.

B.

Staffing costs should be moved to the Economic Appraisal.

C.

To be useful this table should cover the lifetime of the asset.

D.

Equipment costs should be moved to the capital costs.

E.

The cost of finance should be moved to the Economic Appraisal.

Question 2

Temporary accommodation has been put on the site of the Old Fire Station Headquarters whilst thedevelopment of

the new campus takes place.

Should the cost of the temporary accommodation be treated as a capital cost within the Financial Appraisal?

Options:

A.

No, because the Financial Appraisal should NOT contain capital costs.

B.

No, because construction and refurbishment costs should be treated as revenue costs.

C.

Yes, because all running costs must be accounted for.

D.

Yes, because these are a cost of developing the scheme.

Question 3

The Financial Appraisal for the new campus includes the cost of inflation over the life of the scheme.

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

Options:

A.

No, because the Financial Appraisal should be based on constant prices.

B.

No, because it is the Economic Appraisal that should include the cost of inflation.

C.

Yes, because this will be an on going cost to the new campus over the life of the scheme.

D.

Yes, because all of the new campus assets will decrease in value over the life of a scheme.

Question 4

The Benefits Realization Framework section states:

1. It was identified in the OBC that existing schools and universities play a major role in the success or otherwise of the Pittville

project. A strategy for Learning Provider engagement is to be prepared.

2. A senior manager within the Local Education Authority is ultimately responsible for benefits realization.

Which 2 statements apply to these entries?

Options:

A.

Amend entry 1, because the strategy for the realization of benefits should be confirmed within the OBC.

B.

Delete entry 1, because schools and universities will be responsible for the delivery of the benefits.

C.

No change to entry 1, because the strategy for the realization of benefits should be revisited and re-affirmed within the FBC.

D.

Amend entry 2, because the project manager is responsible for benefits realization.

E.

No change to entry 2, because this is appropriate to this section.

Question 5

Column 1 contains only true statements about the Pittville project. For each entry in Column 1, decide whether or not it should be

explained within the Commercial Case or the Financial Case, and then select your answer from Column 2. Each selection from

Column 2 can be used once, more than once or not at all.

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Options:

Question 6

Which 2 observations correctly evaluate the Income?

Options:

A.

There will be a funding gap in Year 2 when the Expenditure is forecast to exceed the Income.

B.

The affordability of the scheme is NOT dependent upon the income from the sale of Pittville High School.

C.

Income from the hire of the sports facilities should NOT be shown as a separate source of income.

D.

Funding to help pay for the construction of the new campus should be shown as a separate source of income in the Revenue Budget.

E.

Local Education Authority (LEA) Funding should be moved to the Economic Appraisal.

Question 7

Answer the following question about the Economic Case within the Outline Business Case

(OBC).

The Preferred Way Forward is the Service Solution to provide a new Learning Campus on the

Old Fire Station Headquarters site and to close and transfer all further education units in the

Pittville area. However there are concerns that the project timescale may be difficult to keep

due to the following reasons:

. Planning authority consent may delay the schedule because the site is in a conservation

area

. Staff and students could be opposed to moving location.

Lines 1 to 5 in the table below consist of an assertion statement and a reason statement. For each

line identify the appropriate option, from options A to E, that applies. Each option can be used once,

more than once or not at all.

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Options:

Question 8

Which statement should be recorded under the Post Project Evaluation heading?

Options:

A.

The Western Area Learning Improvement Programme Director is responsible for delivering the benefits of the Pittville project.

B.

The monitoring of anticipated benefits is to be assessed every year, for a ten-year period.

C.

The rate of 16-18 year olds in education and training to be increased by at least 15% within three years.

D.

New roles will be identified, advertised and assigned before the start of the second academic year of the implementation.

Question 9

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.

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Options:

Question 10

Which is an appropriately defined SMART spending objective for more choice of subjects?

Options:

A.

To increase the number of education courses from 55 to 65, preferably more.

B.

To increase the number of education courses offered to 16 to 18-year-olds within three years.

C.

To provide at least 65 different education courses for 16 to 18-year-olds within three years.

D.

To increase the achievement of qualifications by a minimum of 15% within three years.

Question 11

Which 2 attributes demonstrate that this option supports the key CSF Potential achievability?

Options:

A.

The Pittville project is part of a larger programme of change.

B.

Having a sufficient number of students with one provider will potentially attract good quality teaching staff.

C.

Pittville University can accommodate a further 80 full time learners within the existing facility before the new site is available.

D.

The building of the new campus must achieve compliance with the regulations on the Disability Discrimination Act.

E.

The Consortium has agreed that the priority for the Western Area Learning Improvements Programme is improving the learning provision for 16-18-year-olds in Pittville.

Question 12

Which detail should be explained in the Commercial Case?

Options:

A.

Implementation timescales agreed for delivery.

B.

Impact on the organization's income and expenditure account.

C.

Impact on the organization's balance sheet.

D.

Overall affordability and funding arrangements for the deal.

Question 13

Using the Scenario, answer the following questions about the Commercial Case for the Pittville project.

Lines 1 to 6 in the table below consist of an assertion statement and a reason statement. For each line identify the appropriate

option, from options A to E, that applies. Each option can be used once, more than once or not at all.

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Options:

Question 14

Using the Scenario, answer the following questions.

Column 1 is a list of areas of interest to be included in the communications planned for the Pittville project. For each area of interest

in Column 1, select from Column 2 the MOST appropriate stakeholder group to which it will apply. Each selection from Column 2

can be used once, more than once or not at all.

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Options:

Question 15

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 16

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

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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 17

Answer the following question about benefits criteria.

Column 1 is a list of benefits. For each benefit in Column 1, select from Column 2 the benefit criteria heading under which it should be

classified. Each selection from Column 2 can be used once, more than once or not at all.

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Options:

Question 18

Service Solution 1: 'Do minimum - introduce learning network to

existing schools and universities only'.

Which 2 statements are correct about this entry in the Options

Framework?

Options:

A.

Should be rejected as over-ambitious.

B.

Delivers against one or more of the critical success factors.

C.

Will represent a benchmark for Value For Money throughout the appraisal process.

D.

Supports one or more of the Spending Objectives.

E.

Incorrectly identified as a Scoping Solution.

Question 19

Which detail should be explained in the Financial Case?

Options:

A.

Allocation of risk negotiated between the organization and the preferred service

provider.

B.

Written confirmation of funding arrangements for the deal from the

organization's commissioners.

C.

Underpinning method of payment for services and outputs.

D.

Type of contract used and key contractual issues.

Question 20

Answer the following questions about 'Ensuring Successful Delivery' for the Pittville project.

The best and final offers have been returned for the delivery of the new campus. The preferred supplier was a

construction enterprise called Piaffeco.

Column 1 contains activities taken in the Pittville project. For each entry in Column 1, select from Column 2 the Action within the

Five Case Model that should undertake this activity. Each selection from Column 2 can be used once, more than once or not at all.

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Options:

Question 21

Using the extract below from the Capital Profile for the new campus, answer the following questions.

(Note. The figures entered are correct).

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Options:

Question 22

Which 2 details should be defined when determining benefits, risks, constraints and dependencies?

Options:

A.

The required services which will form the basis for the 'statement of needs (SON)'.

B.

Associated policies, directives, initiatives and regulations.

C.

As wide a range of options as possible that meet the spending objectives.

D.

Construction costs could be higher than expected.

E.

Critical success factors essential to the successful delivery of the project.

Question 23

Answer the following question about spending objectives for the Pittville project.

The following questions include only true statements about the Pittville project, but only 1 statement is an appropriately defined

SMART spending objective for the stated outcome.

Which is an appropriately defined SMART spending objective for increased 16-18 year-old learners participation?

Options:

A.

To increase the rate of 16-18-year-olds in education and training by at least 15% within three years.

B.

To offer a broader range of education courses for 16-18-year-olds.

C.

To accommodate a further 80 full time learners within thePittville University existing facility.

D.

To absorb 11-16 year-old pupils from Pittville High into the other schools if all further education units were moved to a new campus.

Question 24

Which 2 statements should be recorded under the Benefits, risks, dependencies and constraints heading?

Options:

A.

Increase the number of education courses from 55 to 65.

B.

The project could meet with substantial opposition from parents and staff.

C.

Maintain staff satisfaction.

D.

An operating surplus will be generated from hiring out the sports facilities at the new campus.

E.

To implement links with employers and the local economy.

Question 25

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

The Outline Business Case (OBC) was based on the following preferred way forward:

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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 the OBC, the Government has established that students from the country do not have to pay university tuition fees. There

has been a further 15% increase in interest for taking a Welsh language course at Pittville University.

Should the service scope and underlying assumptions be amended?

Options:

A.

No, because the underlying business need of falling 16-18-year-olds participation in education remains the same.

B.

No, because an increase in interest will NOT reduce the support for the preferred option from the Local Education Authority.

C.

Yes, because any changes to service requirements may require following-up throughout the whole case.

D.

Yes, because students are Pittville project stakeholders.

Question 26

Answer the following question about the costs identified when preparing the Economic Appraisal for the short list options

for the Pittville project.

Column 1 contains a list of the costs identified. For each cost in Column 1, decide if the cost should be included in the Economic

Appraisal and select from Column 2 the type of cost it represents. Each selection from Column 2 can be used once, more than

once or not at all.

Column 1

1) The additional on-going cost of electricity for the Pittville

University development.

2) The money spent to date on the Old Fire Station

Headquarters site feasibility study and legal advice.

3) The cost of a stand-alone technology cabin with a

separate contract for specialist call-out support, paid on

an as-needed basis.

4) The Highways Department will have to upgrade the

access road to the Old Fire Station Headquarters site.

However, this cost will NOT count against the Pittville

project budget.

    The Old Fire Station Headquarters site was to be sold

but will now be used for the new campus. It is owned by

the Council so there is no cost.

6) The car park at Pittville University will need to be

expanded if over 1,500 students attend the university.

Column 2

A)NOT included in the Economic Appraisal

B)Fixed cost

C)Variable cost

D)Semi-variable cost

E)Step cost

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Options:

Question 27

The Consortium has appointed its own assurance on the Western Area Learning

Improvement Programme.

Which action should be completed by this role?

Options:

A.

Establish the Pittville project spending objectives.

B.

Confirm the requirements for 16 to 18-year-old learners can be met.

C.

Manage the risks retained by the public sector.

D.

Arrange and schedule the resources required to develop the new learning campus.

Question 28

Which 2 statements should be recorded under the Potential for risk transfer heading?

Options:

A.

Teaching staff will automatically become employees at the new campus with the same terms and conditions of employment.

B.

The selected contractor will be responsible for taking measures to reduce any potential errors in the construction phase.

C.

All construction work is to comply with standard building regulations.

D.

The new campus building is to be listed as an asset on the Local Education Authority balance sheet.

E.

The Local Education Authority is best placed to respond to possible opposition from staff and parents.

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Total 95 questions