SAFE-SPC · Question #115
(Select 3) Based on the work of Don Reinertsen, SAFe denotes five primary economic factors that can be used to consider the economic perspective of a particular investment. From the list below…
The correct answer is A. Lead time D. Risk E. Development expense. Based on Don Reinertsen's lean economics, SAFe identifies five primary economic factors shaping investment decisions: lead time, development expense, risk, value (business impact), and cost of delay. Options A (Lead time), D (Risk), and E (Development expense) are three of…
Question
(Select 3) Based on the work of Don Reinertsen, SAFe denotes five primary economic factors that can be used to consider the economic perspective of a particular investment. From the list below, choose three of those primary economic factors.
Options
- ALead time
- BValue stream budget
- CReturn on Investment (ROI)
- DRisk
- EDevelopment expense
How the community answered
(40 responses)- A88% (35)
- B10% (4)
- C3% (1)
Explanation
Based on Don Reinertsen's lean economics, SAFe identifies five primary economic factors shaping investment decisions: lead time, development expense, risk, value (business impact), and cost of delay. Options A (Lead time), D (Risk), and E (Development expense) are three of those five factors, directly reflecting the operational and financial dimensions Reinertsen uses to evaluate economic trade-offs in product development.
Why the distractors are wrong:
- B (Value stream budget) is a SAFe funding and governance mechanism - it describes how money is allocated to ARTs, not a primary economic factor in Reinertsen's model.
- C (ROI) is a derived financial metric that results from weighing the five factors; it is not one of the factors itself.
Memory tip: Notice that the two wrong answers (Budget, ROI) are accounting/output concepts - things you calculate or plan around. The correct answers are input variables you assess before and during development: how long will it take (Lead time), what could go wrong (Risk), and what will it cost to build (Development expense). If the choice sounds like a finance department report, it's probably not one of Reinertsen's five primary factors.
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