PMI PBA: Developing Investment appraisal

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seema.sonkiya
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PMI PBA: Developing Investment appraisal

Postby seema.sonkiya Tue Dec 02, 2014 5:39 am

Who has the primary responsibility of developing a comparison between financial benefits expected to flow from a proposal with the predicted costs?

A. Business Analyst
B. Management Accountants
C. Project Sponsor
D. Portfolio Manger

What is the correct answer?
seema.sonkiya
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Re: PMI PBA: Developing Investment appraisal

Postby seema.sonkiya Wed Dec 03, 2014 5:40 am

I got following answer through our linkedin group i.e. PMI Professional in Business Analysis (PMI-PBA) Prep Study Group: https://www.linkedin.com/groups/PMI-PBA ... mr_6661117

A. Business Analyst

Here is my take:

Investment appraisal is the comparison between financial benefits expected to flow from a proposal with the predicted cost and it is the province of the accountants, specifically management accountants, A Business Analyst just need to have working knowledge of concepts and techniques as they contribute to the construction of investment appraisals.

These calculations are complex and in general Management Accountants are ultimate responsible in the organisations. In question the word “primary responsibility” is the key. Business Analyst is the facilitator to help stakeholders to work together in investment appraisal.

So as per my opinion, option B, Management Accountants is the answer.

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