What is the significance of 'acceptance criteria' in Agile?

The significance of 'acceptance criteria' in Agile primarily lies in specifying user acceptance of a deliverable. Acceptance criteria are defined as conditions that a product or feature must meet to be accepted by the customer or stakeholders. They serve as a clear guide for the development team regarding the expectations for features or user stories, ensuring that everyone involved has a shared understanding of what constitutes successful completion.

These criteria help facilitate communication between the development team and stakeholders, as they clarify the requirements and functionalities needed. By having well-defined acceptance criteria, teams can focus their testing efforts, prioritize tasks effectively, and ultimately deliver a product that aligns with user needs and expectations. This collaborative approach ensures that the end product delivers value and meets the criteria set forth by the customer, aiding in the acceptance process.

The other options do not accurately capture the role of acceptance criteria in Agile methodologies. While project milestones, performance benchmarks, and documentation standards are indeed important aspects of project management, they do not specifically define the conditions that determine whether a deliverable meets the user’s or stakeholder's needs.