American Institute of Certified Planners (AICP) Practice Exam

Cost-Revenue Analysis is primarily concerned with which of the following?

1. Determining the sustainability of municipal services

2. Systematically comparing two monetary flows

3. Measuring economic impacts of zoning changes

4. Assessing public sentiment regarding new infrastructure

The correct answer is: Systematically comparing two monetary flows

Cost-Revenue Analysis focuses on systematically comparing two monetary flows to assess the financial viability of a project or service. This analysis helps to determine whether the revenue generated from a particular initiative can cover the associated costs. By examining the relationship between costs and revenues, planners can make informed decisions about resource allocation and project feasibility. This approach is crucial in various planning contexts, especially when city managers and planners need to justify investments or operational changes. Understanding the comparison of these flows allows for the evaluation of financial sustainability and helps identify potential shortfalls in funding or areas where cost savings can be achieved. The other options, while relevant to broader planning and economic evaluations, do not directly capture the essence of Cost-Revenue Analysis. They focus on other aspects, such as sustainability assessments, economic impacts, and public sentiment, which may intersect with and inform a broader analysis but aren't the primary concern of Cost-Revenue Analysis itself.