APMG-International Better-Business-Cases-Practitioner Exam Practice Test Instant Access

Question 1

Providing better facilities, improving learning provision and offering a wider choice of education courses.

Which of the key objectives for spend are these objectives based on?

AEconomy.

BEfficiency.

CEffectiveness.

DCompliance.

Answer : C

Question 2

An extract of an entry in the benefits register includes the following information:

1. Benefit type: Cash-releasing

2. Description: A net overall saving in the cost of cleaning

3. Target improvement: Reduce overall costs of cleaning contracts by 10% per annum

4. Responsible officer: Pittville University Procurement Manager.

Which 2 statements apply to these entries?

AAmend entry 1, because the benefit type should be 'financial but non-cash-releasing'.

BNo change to entry 1, because the benefit is cash-releasing and should be measured in financial terms.

CAmend entry 3, because the improvement is unknown.

DNo change to entry 3, because the benefits register should indicate the level of improvement expected.

EAmend entry 4, because the SRO should be the responsible officer for all benefits.

Answer : B, D

Question 3

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?

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

BNo change to entry 1, because non cash-releasing benefits should be entered in the benefits register.

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

DNo change to entry 2, because an increase in productivity is classified as cash-releasing.

ENo change to entry 2, because a growth in learner numbers will result in additional revenue.

Answer : B, C

Question 4

The Management Case states that, because the Pittville project is part of the Western Area Learning Improvements Programme:

1. A benefits realization strategy and benefits register are NOT required for the project.

2. All benefits will be tracked at the programme level.

Which 2 statements apply to these entries?

AAmend entry 1, because all projects should use a benefits register to identify key benefits and how they will be tracked.

BAmend entry 1, because the benefits realization strategy for the project should outline how the programme's approach to realizing benefits is being adapted for the project.

CAmend entry 2, because the potential benefits from the project should be documented only in the Economic Case.

DNo change to entry 2, because when a project is part of a wider programme, benefits should be tracked only at the programme level.

ENo change to entry 2, because tracking benefits at the programme level will help to avoid double counting of benefits from different projects.

Answer : A, B

Question 5

The benefits realization strategy states that the following:

1. Benefits will be entered in the benefits register

2. Only cash-releasing benefits will be tracked in the benefits register.

Which 2 statements apply to these entries?

AAmend entry 1, because benefits should be captured in the benefits realization strategy.

BNo change to entry 1, because the benefits register should capture all benefits.

CAmend entry 2, because all key benefits, whether or NOT they are cash-releasing, should be identified and monitored.

DNo change to entry 2, because all benefits should be measured in financial terms.

ENo change to entry 2, because only financial benefits should be included in the business case.

Answer : B, C

Question 6

It is estimated that 60% of the taxation costs on the development will NOT be reclaimable.

Should the unclaimable taxation costs be excluded from the Financial Appraisal?

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

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

CYes, because taxation costs should be excluded from the Financial Appraisal.

DYes, because it is the Economic Case that should include inflation and taxation costs.

Answer : B

Question 7

The new campus scheme will take three years to complete. Projected inflation over this period will mean that staffing costs will be 6%

higher when the campus is operational.

Should this increase be managed as a risk to the project?

ANo, because inflation should be included as a cost in the Financial Appraisal.

BNo, because any increase in cost should be dealt with as an issue.

CYes, because any cost increase could threaten the affordability of a scheme.

DYes, because any risk that might affect the financial viability of a scheme should be closely managed.

Answer : C

APMG-International Better-Business-Cases-Practitioner Better Business Cases Practitioner Exam Practice Test