Automation ROI calculation in Testing Fundamentals - Cheat Sheet & Quick Revision

Recall & Review

beginner

What does ROI stand for in Automation ROI calculation?

ROI stands for Return on Investment. It measures how much benefit or profit you get from investing in automation compared to the cost.

beginner

Name two main cost factors considered in Automation ROI calculation.

The two main cost factors are: 1) Initial investment cost (tools, setup, training), and 2) Maintenance cost (updating scripts, fixing failures).

beginner

How does automation save time in testing?

Automation runs tests faster and can repeat tests many times without extra effort, saving manual tester hours and speeding up feedback.

intermediate

What is a simple formula to calculate Automation ROI?

ROI = (Savings from automation - Cost of automation) / Cost of automation. It shows how much you gain compared to what you spent.

intermediate

Why is it important to consider maintenance cost in Automation ROI?

Because automated tests need updates and fixes over time. Ignoring maintenance can make automation costly and reduce ROI.

Which of the following is NOT a cost in Automation ROI calculation?

A Initial tool purchase

B Automated test execution time

C Test script maintenance

D Manual test execution time

Manual test execution time is part of the savings (manual effort avoided), not a cost of automation.

What does a positive ROI value indicate in automation?

A Automation costs more than it saves

B Automation is not used

C Automation saves more than it costs

D Automation has no effect on costs

A positive ROI means the benefits (savings) are greater than the costs.

Which factor increases the ROI of automation?

A Frequent test runs

B High maintenance cost

C Rarely running tests

D Manual testing only

Frequent test runs spread the automation cost over many uses, increasing ROI.

Why might automation not always have a good ROI?

A If tests run very often

B If tests are simple and run rarely

C If automation tools are free

D If manual testing is slow

If tests are simple and run rarely, automation costs may not be justified.

Which of these is a benefit included in ROI calculation?

A Reduced manual testing time

B Increased tool license fees

C Higher maintenance effort

D Longer test execution time

Reduced manual testing time is a saving and benefit in ROI.

Explain how to calculate the ROI of automation testing in simple terms.

Think about what you gain and what you spend on automation.

List factors that affect whether automation testing will have a good ROI.

Consider costs and benefits that change ROI.