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WGU VPC2 Data-Driven Decision Making C207 Exam - Topic 1 Question 5 Discussion
Topic #: 1
A county government is creating a budget for the next fiscal year. They wish to use analytics to guide their decisions about costs.
Which analytic method can the county apply to this issue?
To guide budgeting decisions, data-driven decision making emphasizes benchmarking against comparable organizations. Using the average cost per project spent by other similar counties allows the county to assess whether its planned expenditures are reasonable and competitive.
Benchmarking provides external context that internal historical metrics cannot. While median costs or project counts describe internal performance, they do not indicate whether spending levels are appropriate relative to peers. Comparing average costs across similar counties helps identify inefficiencies, cost-saving opportunities, and realistic budget targets.
Therefore, option A is the most effective analytic method for cost-based decision-making in this scenario.
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