CAPM Business Analysis Frameworks Practice Question
A business analyst is developing a business case for a proposed IT system. Which component should be included to evaluate the financial viability?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Cost-benefit analysis
Cost-benefit analysis compares the costs and benefits to determine financial viability. Option A is incorrect because requirements traceability matrix links requirements, not financials. Option B is incorrect because stakeholder register identifies stakeholders, not financials. Option D is incorrect because WBS decomposes work.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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Requirements traceability matrix
Why it's wrong here
A traceability matrix links requirements to design, code and test cases; it carries no cost, benefit or cash-flow data, so it cannot assess financial viability. It is tempting because it supports scope and change control, and would be the right artefact when verifying that every requirement is delivered and tested.
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Stakeholder register
Why it's wrong here
A stakeholder register lists people and their interests, influence and engagement, providing no cost, benefit or return figures needed to judge financial viability. It is tempting because stakeholder analysis underpins the business case, and it would be the right artefact when planning communications and engagement rather than evaluating finances.
- ✓
Cost-benefit analysis
Why this is correct
A cost-benefit analysis quantifies expected costs against projected benefits, yielding metrics such as net present value, ROI and payback period. This directly satisfies the stem's requirement to evaluate the proposed IT system's financial viability within the business case.
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Work breakdown structure
Why it's wrong here
A work breakdown structure decomposes project scope into deliverables, offering no cost, benefit or return data for assessing financial viability. It is tempting because the WBS later supports cost estimation, and it would be correct when defining and organising the project's scope rather than appraising the investment.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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