SAFe-SPC Exam Dumps | What does innovation accounting mean?

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Question 20/84

What does innovation accounting mean?

A. Capitalizing the cost of software development using Story points.

B. Defining, empirically measuring, and communicating the true progress of innovation.

C. Demoing Stories that come out of the IP Iteration.

D. Being sure to account for the investment in new product initiatives on a P&L.

Correct Answer: B

Innovation accounting means defining, empirically measuring, and communicating the progress of innovative work using metrics that reflect validated learning, rather than traditional outputs or financials. It supports objective evaluation of hypotheses and pivots in Lean Portfolio Management.
References:
SAFe 6.0 Website: Innovation Accounting
SPC 6.0 Guide: "Innovation accounting provides a framework for measuring progress of new initiatives based on evidence, not just effort."

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