This question is based on a case study that compares two scenarios for Company C, a software development firm. In Scenario 1, Company C uses a traditional waterfall approach to develop a software product for a client. In Scenario 2, Company C uses an agile approach to develop the same product. The question asks for the increased cost in Scenario 2, which is the difference between the total cost of Scenario 2 and the total cost of Scenario 1. According to the case study, the total cost of Scenario 1 is $1,236,210 and the total cost of Scenario 2 is $1,444,000. Therefore, the increased cost in Scenario 2 is $1,444,000 - $1,236,210 = $207,790.
References: The case study is available in the CBAP Exam Sample Questions and Exam Blueprint document1. The answer is also verified by the CBAP Exam Answer Key document2. Both documents are accessible from the IIBAwebsite3.