ExamTopics Logo
Mail Us[email protected]
Menu
Iiba Discussions
exam questions

Exam CBAP All Questions

View all questions & answers for the CBAP exam
Go to Exam

Exam CBAP topic 1 question 142 discussion

Actual exam question from IIBA's CBAP
Question #: 142
Topic #: 1
[All CBAP Questions]

A business analyst is helping management determine which solution they should choose. As it happens that the organization can only choose one of the two solutions due to time and resource restrictions. Solution A worths $456,000 to the organization while solution B worths $565,000 to the organization. While solution A costs less, it is less risky and takes less time to complete so management elects to seize Solution A.
What is the opportunity cost?

  • A. $565,000
  • B. There is not enough information to know how much the solution will cost the organization.
  • C. $109,000
  • D. $456,000
Show Suggested Answer Hide Answer
Suggested Answer: A 🗳️
by rhsdeal at May 1, 2021, 12:26 p.m.

Comments

Chosen Answer:
This is a voting comment (?). It is better to Upvote an existing comment if you don't have anything to add.
Switch to a voting comment New
Submit Cancel
Jeffdu
Highly Voted 3 years, 11 months ago
Given answer is correct, this is in the context of business analysis, not economics. BABAK guide v3 page 159 - "The opportunity cost of any design option is equal to the value of the best alternative not selected"
upvoted 16 times
...
ALLYMERRY
Most Recent 2 weeks ago
Selected Answer: A
Opportunity cost is alternative forgone. so what was not used/chosen in place of what is being used/chosen, hence,A
upvoted 1 times
...
aaa111aaa
4 months, 3 weeks ago
Selected Answer: A
aaaaaa
upvoted 1 times
...
Shreejith
2 years, 9 months ago
Selected Answer: C
Opportunity cost refers to the BENIFITS that could have been achieved by selecting an alternative change strategy. so the answer is C
upvoted 1 times
...
saeedddddd
3 years, 5 months ago
sorry the right answer is a
upvoted 2 times
...
saeedddddd
3 years, 5 months ago
dddddddddddddddddd
upvoted 1 times
...
rhsdeal
3 years, 11 months ago
Correct Answer: C Opportunity Cost Formula and Calculation Opportunity Cost=FO−CO where: FO=Return on best foregone option CO=Return on chosen option 565,000 – 456,000 = 109,000
upvoted 3 times
NickMane
3 years, 7 months ago
Incorrect, A is correct according to Babok
upvoted 3 times
...
Squib
2 years, 2 months ago
it is A.
upvoted 1 times
...
Bunlizlaw
2 years ago
It's A according to BABOK.You're using Economics process to calculate 🙂.
upvoted 1 times
...
...
Community vote distribution
A (35%)
C (25%)
B (20%)
Other
Most Voted
A voting comment increases the vote count for the chosen answer by one.

Upvoting a comment with a selected answer will also increase the vote count towards that answer by one. So if you see a comment that you already agree with, you can upvote it instead of posting a new comment.

SaveCancel
exam
Someone Bought Contributor Access for:
SY0-701
London, 1 minute ago