Which statement best describes the internal assessment method for estimating benefit magnitude?

• A. It uses external benchmarks to estimate benefits
• B. It uses the firm's own internal metrics and historical data
• C. It relies on vendor provided estimates
• D. It ignores historical records

Answer: (B)

Internal assessment relies on the organization's own data to estimate benefits. By examining the firm’s metrics, performance indicators, and historical records, you can anchor the expected gains to what has actually happened in the past and what the current operations look like. This makes the benefit estimates more relevant and accurate for this specific organization because they reflect its unique processes, costs, and improvements. External benchmarks, vendor estimates, or ignoring historical data would introduce outside assumptions or miss the trend information that helps ground the forecast in reality.