IIBA Updated CCBA Exam Questions and Answers by yazan

SMART goals are objectives that are designed to be Specific, Measurable, Achievable, Relevant, and Time-bound. The element of ‘Relevant’ in SMART goals refers to ensuring that the goal aligns with broader business strategies, visions, missions, and values. In the context of the facilities management company’s objective to double the revenue of their office waste recycling service, the goal would need to be relevant to the enterprise’s overall direction and purpose to ensure it contributes meaningfully to the organization’s success.

References: The information is based on the SMART goals framework as understood in business analysis practices up to the year 2021. For the most current and detailed explanations, please refer to the latest resources provided by the International Institute of Business Analysis (IIBA) or the specific learning documents for the Capability in Business Analysis™ (CCBA®) certification.

 Policies and rules serve as boundaries and constraints for the organization and the operation of the organization. Policies and rules are external or internal factors that limit the options or actions available to the organization. They can be formal or informal, explicit or implicit, and can originate from various sources, such as laws, regulations, standards, contracts, agreements, policies, procedures, guidelines, or best practices. Policies and rules are one of the elements of the Business Analysis Core Concept Model™ (BACCM™), which describes the fundamental concepts that are important for business analysis. Policies and rules are also one of the inputs to the Define Business Need task, which is part of the Strategy Analysis knowledge area. Policies and rules help to define the problem or opportunity that the organization faces and the desired outcomes that the solution should achieve. References: Business Analysis Expert Certification, CCBA® | IIBA®, CERTIFICATION OF CAPABILITY IN BUSINESS ANALYSIS, [Business Analysis Core Concept Model™ (BACCM™) | IIBA®]

The decomposition of activities and tasks based on the work breakdown structure creates an activity list for the business analyst. An activity list is a document that identifies the activities and tasks needed to produce the business analysis deliverables. It also includes information such as activity name, description, duration, resource requirements, and dependencies. An activity list is an input to the business analysis planning process, where the business analyst determines the sequence, schedule, and budget of the activities and tasks. References:

• Business Analysis Expert Certification, CCBA® | IIBA®, section “Plan Business Analysis Work”
• CERTIFICATION OF CAPABILITY IN BUSINESS ANALYSIS, page 6, section “4. Review the Exam Blueprint”

Sunk costs are the costs that have already been incurred and cannot be recovered or changed. They are irrelevant for future decisions, as they do not affect the potential benefits or outcomes of the alternatives. In this case, the $750,000 invested into the existing technology is a sunk cost, as it cannot be refunded or reused. The organization should not consider this cost when deciding whether to purchase the newer solution or not. Instead, the organization should compare the expected costs and benefits of the newer solution with the current solution, and choose the option that maximizes the value for the organization12

Option A is incorrect because opportunity cost is the value of the next best alternative that is forgone as a result of making a decision. It is the benefit that could have been gained by choosing a different option. In this case, the opportunity cost of purchasing the newer solution is the value of keeping the existing solution, and vice versa. The opportunity cost is relevant for future decisions, as it affects the potential benefits or outcomes of the alternatives3

Option B is incorrect because cost of nonconformance is the cost incurred due to poor quality or deviation from the standards or requirements. It includes the costs of rework, defects, waste, scrap, warranty, customer dissatisfaction, and lost reputation. In this case, the cost of nonconformance is the cost associated with the defects and issues of the existing solution, and the potential cost of not meeting the customer expectations or needs. The cost of nonconformance is relevant for future decisions, as it affects the potential benefits or outcomes of the alternatives4

Option D is incorrect because cost-benefits is the comparison of the costs and benefits of a decision or an action. It is a technique used to evaluate the feasibility, desirability, and value of a solution or an alternative. In this case, the cost-benefits of purchasing the newer solution is the comparison of the expected costs and benefits of the newer solution with the current solution. The cost-benefits is relevant for future decisions, as it affects the potential benefits or outcomes of the alternatives5 References:

• Business Analysis Techniques - ECBA, CCBA, CBAP Endorsed, Section 8.5: Cost-Benefit Analysis
• CCBA Certification Cost Details | Techcanvass - Business Analysis Blog
• A Comprehensive Guide to CCBA Certification - Business Analysis Blog
• Business Analysis Body of Knowledge (BABOK® Guide), Section 10.23: Decision Analysis, 10.23.3.2: Sunk Costs
• Business Analysis Body of Knowledge (BABOK® Guide), Section 10.23: Decision Analysis, 10.23.3.1: Opportunity