Better-Business-Cases-Practitioner Exam Dumps - Better Business Cases Practitioner Exam

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Question # 9

The current establishment of support staff will be able to absorb 30% growth in numbers of 16 - 18-year-old learners.

This information has been:

1. Entered in the benefits register

2. Classed as a cash-releasing benefit.

Which 2 statements apply to these entries?

Amend entry 1, because benefits should be described only in the Economic Case.

No change to entry 1, because non cash-releasing benefits should be entered in the benefits register.

Amend entry 2, because the benefit class should be 'non-cash-releasing'.

No change to entry 2, because an increase in productivity is classified as cash-releasing.

No change to entry 2, because a growth in learner numbers will result in additional revenue.

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Question # 10

Which action should be completed by the Pittville Project Manager?

Produce regular progress reports for the Senior Responsible Owner of the

project.

Appoint the Senior Responsible Owner for the project.

Approve the specification for the new learning campus.

Approve the continuation of the project at the end of each delivery stage.

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Question # 11

Which statement should be recorded under the Benefits Realization heading?

The Pittville Project Manager is responsible for producing regular progress reports for the Senior Responsible Owner of the project.

The local university has proposed to run a series of workshops in the Western Area to prepare for university applications.

The rationalization of courses to improve pupil/teacher ratios.

The Reference Project is based on using the same property management company that maintains Pittville University.

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Question # 12

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?

No, because the anticipated benefits will remain the same.

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

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

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

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Question # 13

Using the Scenario, answer the following question about the actions taken when establishing the

Economic Case within the Outline Business Case (OBC).

It is thought that funding for the new campus on the site of the Old Fire Station Headquarters couldbe achieved through a public private partnership (PPP). The size of the Pittville project is very similar to the recent PPP development of Marshgate High School, a school in a neighbouring part of the county.

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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Answer:

Explanation:

Let's evaluate each assertion and reason to identify the appropriate options from A to E:

The assertion is that the PPP costs for Marshgate High are NOT relevant to estimating costs for the development of Pittville University. The reason given is that the Reference Project is used to provide an estimate of how much it will cost the public sector using procurement through conventional approaches. This reason does not logically support the assertion because using a reference project like Marshgate High could be relevant for cost estimation by comparison, so the option that applies here isB. True, BUT the reason does not explain the assertion.

The assertion is that the OBC must include the value for money assessment of the PPP schemes to support the Pittville University project details. The reason is that the procurement strategy for how the required services or works can best be procured should be determined in an Economic Appraisal. This reason supports the assertion because part of determining the procurement strategy involves assessing the value for money of different schemes, including PPP. Thus, the option here isA. True, AND the reason explains the assertion.

The assertion is that it would be appropriate for the PPP option to be carried forward to the shortlist, along with the 'BAU/status quo', do minimum and preferred option for the development of Pittville University. The reason is that any form of private project finance should be appraised using the Options Framework filter. This is a correct reason, as all financing options should be appraised to determine the best approach. Therefore, the option isA. True, AND the reason explains the assertion.

The assertion is that the data from the Marshgate High School project should be used to derive the optimism bias adjustment factor for the new Pittville University campus. The reason is that the Economic Appraisal should research accurate costings and review all contributory factors that could lead to cost and time over-runs. This reason supports the assertion because using data from similar projects can help in adjusting for optimism bias, which is part of ensuring accurate costing. Therefore, the correct option isA. True, AND the reason explains the assertion.

The assertion is that the bespoke technology cabin planned for Pittville University should be considered as a non-standard building project for deriving the optimism bias adjustment factor. The reason given is that each project type should be considered as a separate project for the purpose of applying an optimism bias adjustment factor. This reason supports the assertion because if the technology cabin is indeed a non-standard project, it should be evaluated on its own to ensure the adjustment factor is accurately applied. The correct option isA. True, AND the reason explains the assertion.

Question # 14

Which 2 observations correctly evaluate risks that could affect the affordability of this project?

Without the sale of Pittville High School, the project is no longer viable.

The project would still be viable if equipment costs were to double after Year 3.

If the other income were to be withdrawn for any reason, LEA Funding alone could fund the running costs of the scheme after Year 3.

The project would no longer be affordable if funding were to increase by 5%.

Income from the hire of the Sport Facilities must continue to increase every year for the scheme to be viable.

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Question # 15

Answer the following questions about the content of the Commercial Case and the Financial Case for the Pittville project.

Which detail should be explained in the Commercial Case?

How charges for the preferred service provider's offer have been modelled, including the resultant benefits.

Capital and revenue implications of the resultant deal, including any costs falling to the organization.

Net effect on the organization's charges (prices), if any.

Service streams and outputs being contracted for.

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Question # 16

Which 2 statements should be recorded under the Proposed charging mechanisms heading?

The cost of any changes to the contract will need to be authorized by the Programme Change Board.

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

The return on the investment will repay the sum of the original investment over 10 years.

The contract period for development of the new campus is three years.

20% of the contract price is to be paid up front for materials.

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