PeopleCert MOVF Exam - Topic 3 Question 57 Discussion

Actual exam question for PeopleCert's MOVF exam

Question #: 57
Topic #: 3

[All MOVF Questions]

Why may cost benefit analysis (CBA) be applied when developing a Value Improving Proposal (VIP)?

AIt compares the initial magnitude of cost of an MoV Study with the long term benefits it will deliver

BAll new policies, programmes and projects should be subject to comprehensive but proportionate assessment

CIt is used in conjunction with discounted cash flow to ensure that the lowest cost VIP is always selected

DIt assesses the benefits of implementing a proposal against the risk that the VIP may fail

Show Suggested Answer

Suggested Answer: B

by Valentine at Aug 21, 2022, 10:09 PM

Limited Time Offer

25%

Off

Get Premium MOVF Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Lenna

4 months ago

I think all projects should definitely go through this process.

upvoted 0 times

...

Dudley

4 months ago

It's crucial for assessing risks and potential failures too!

upvoted 0 times

...

Margarita

4 months ago

Wait, can CBA really predict long-term benefits accurately?

upvoted 0 times

...

Shawn

4 months ago

Totally agree, it's essential for smart decision-making!

upvoted 0 times

...

Catherin

4 months ago

CBA helps weigh costs vs. benefits effectively.

upvoted 0 times

...

Claribel

5 months ago

I practiced a question similar to this, and I think comprehensive assessments like in option B are crucial for new projects, but I’m not confident about the best answer here.

upvoted 0 times

...

Sage

5 months ago

I feel like option D could also be relevant since assessing risks is important in decision-making, but I can't recall the exact details.

upvoted 0 times

...

Kathrine

5 months ago

I think option A sounds familiar because it talks about comparing costs and long-term benefits, which we discussed in class.

upvoted 0 times

...

Gretchen

5 months ago

I remember CBA helps weigh costs against benefits, but I'm not sure how it specifically relates to VIPs.

upvoted 0 times

...

Albina

5 months ago

I'm pretty sure the answer is C. Numerical is not a statistical level of measurement, the others (ordinal, nominal, and ratio) are.

upvoted 0 times

...

Julianna

5 months ago

Hmm, I'm not too familiar with these specific services. I'll have to think it through and try to eliminate the options that don't seem to match the criteria.

upvoted 0 times

...

Denise

5 months ago

I practiced a similar question where for-profits had more funding options. I guess Verde has both, but Noir might just have debt?

upvoted 0 times

...