CIS-PPM practice question 14 of 15

When setting-up a program, planned ROI% is calculated based on: (Choose two.)

Full set: 60 questions
Answer options
A: Values in the NPV field.
B: Values in the Planned cost field. Correct answer
C: Values in the Planned return field. Correct answer
D: Values in the Budgeted cost field.
Correct Answer:
B. Values in the Planned cost field.; C. Values in the Planned return field.
Explanation

The Planned Return on Investment (ROI) percentage for a program is a calculated field. It uses the formula: [(Planned return - Planned cost) / Planned cost] 100. Therefore, the two direct inputs required for this calculation are the values from the 'Planned return' and 'Planned cost' fields on the program record.

Why Incorrect

A. Net Present Value (NPV) is a separate financial metric that considers the time value of money; it is not a direct input for the standard Planned ROI% calculation.
D. Budgeted cost is used for financial tracking and variance analysis against the plan, but the 'Planned cost' field is the specific value used in the ROI formula.

References

1. ServiceNow Product Documentation, "Program form", Rome. In the Financials section, the description for the "Planned ROI %" field explicitly states the calculation: "The planned return on investment (ROI) for the program is calculated as: [(Planned return - Planned cost) / Planned cost] 100."

2. ServiceNow Product Documentation, "Create a program", Rome. The field descriptions for financial planning on the program form confirm that 'Planned cost' and 'Planned return' are the primary inputs for planned financial metrics like ROI.

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