1.2

Question 1

What is Cost?

Answer 1

The amount of money spent on a specific activity or resource

Question 2

What is Value?

Answer 2

The perceived benefits, usefulness and importance of something co-created through an active collaboration between providers, consumers and other organizations

Question 3

What is an Organization?

Answer 3

A person or a group of people that has its own functions with responsibilities, authorities and relationships to achieve its objectives

Question 4

What is a Risk?

Answer 4

A possible event that could cause harm or loss, or make it difficult to achieve objectives. Can also be defined as uncertainty of outcomes.

Question 5

What is an outcome?

Answer 5

A result for a stakeholder enabled by one or more outputs

Question 6

What is an output?

Answer 6

A tangible or intangible deliverable of an activity

Question 7

What is Utility?

Answer 7

The functionality offered by a product or service to meet a particular need. Utility can be summarized as “what the service does” and can be used to determine whether a service is “fit for purpose”. To have utility a service must either support the performance of the consumer, remove constraints from the consumer or both.

Question 8

What is Warranty?

Answer 8

Assurance that a product or service will meet agreed requirements. Warranty can be summarized as “how the service performs” and can be used to determine whether or a service is “fit for use”. Warranty often relates to service levels aligned with the needs of service consumers. This may be based on a formal agreement, or marketing message or brand image. Warranty address availability, capacity, levels of security and continuity of service. a service may be said to provide acceptable assurance “warranty” if all defined and agreed conditions are met.