When a scarce, non-shareable resource is needed by two concurrent projects, the first step is to make an allocation decision based on organizational strategy and value. Assessing business benefits for both projects (B) aligns with portfolio/program thinking and ensures the SME is assigned where it produces the highest overall return, risk reduction, compliance necessity, or strategic impact. This reflects the PMP emphasis on business environment: projects exist to deliver value, and constrained resources must be prioritized accordingly. Evaluating budget and schedule impacts (C) is important, but it should follow the value decision—otherwise the organization may optimize locally (time/cost) while sacrificing strategic outcomes. Calculating SPI or CPI (A, D) is not appropriate because these indices measure performance against baselines during execution; they do not determine which project should receive a resource in a forward-looking prioritization decision. Starting with business benefits creates a defensible rationale for allocation, improves stakeholder buy-in, and supports governance decisions about trade-offs and opportunity cost.