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810-440 · Question #183

Which is a direct financial benefit from business outcomes?

The correct answer is B. reduced capital expenditures. Business outcomes frequently aim to improve an organization's financial health, and reducing large upfront investments is a key way to achieve this.

Introduction to Business Architecture

Question

Which is a direct financial benefit from business outcomes?

Options

  • Aincreased net present value
  • Breduced capital expenditures
  • Cincreased chargeback
  • Dincreased total cost of ownership

How the community answered

(53 responses)
  • A
    2% (1)
  • B
    91% (48)
  • C
    2% (1)
  • D
    6% (3)

Why each option

Business outcomes frequently aim to improve an organization's financial health, and reducing large upfront investments is a key way to achieve this.

Aincreased net present value

Increased net present value (NPV) is a financial metric used to evaluate project profitability, not a direct financial benefit itself, though it reflects positive financial outcomes.

Breduced capital expendituresCorrect

Reduced capital expenditures directly improves an organization's cash flow and financial health by lowering the initial investment required for assets or projects. This is a clear financial benefit often achieved through successful business outcomes, such as migrating to cloud services or optimizing IT infrastructure.

Cincreased chargeback

Increased chargeback is a method for allocating costs, not a direct financial benefit from a business outcome, and could even represent increased costs for internal departments.

Dincreased total cost of ownership

Increased total cost of ownership (TCO) represents higher overall costs for an asset or system over its lifecycle, which is a negative financial outcome, not a benefit.

Concept tested: Financial benefits of business outcomes

Topics

#Financial benefits#Business outcomes#Reduced CAPEX

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