Project Management Institute (PMI) Professional in Business Analysis Practice Exam

Which analysis is used to compare the benefits and costs of a project?

1. Feasibility Analysis

2. Force Field Analysis

3. Cost-Benefit Analysis

4. Value Stream Map

The correct answer is: Cost-Benefit Analysis

Cost-Benefit Analysis is the process of comparing the expected costs of a project against the anticipated benefits to determine its overall value and feasibility. This analysis allows stakeholders to make informed decisions by quantifying financial impacts, which aids in assessing whether the investment is worthwhile. Using this approach, organizations can identify potential return on investment and prioritize projects based on which ones will provide the best outcomes. Cost-Benefit Analysis facilitates rational decision-making, as it lays out a clear financial argument for pursuing or abandoning a project based on its advantages compared to its expenses. In contrast, Feasibility Analysis is more focused on assessing whether a project is viable and achievable, rather than quantifying specific costs and benefits. Force Field Analysis investigates the forces that support or oppose a change, emphasizing the broader context rather than direct financial evaluations. Value Stream Mapping primarily visualizes and analyzes the flow of materials and information in a process, aiding in identifying inefficiencies rather than evaluating cost versus benefit of a project.