91.
What is the definition of service valuation?
- A.The process responsible for identifying the actual costs of delivering IT services, comparing them with budgeted costs, and managing variance from the budget
- B.A framework that allows the service provider to determine the costs of providing services
- C.The activity of predicting and controlling the spending of money
- D.The ability to understand the costs of a service relative to its business value
- Answer & Explanation
- Report
Answer : [D]
Explanation :
Explanation :
| Service valuation is defined as the ability to understand the costs of a service relative to its business value. Accounting is the process responsible for identifying the actual costs of delivering IT services, comparing them with budgeted costs, and managing variance from the budget. The framework that allows the service provider to determine the costs of providing services is the cost model, and the activity of predicting and controlling the spending of money is budgeting. |
92.
Which of the following statements is correct?
- A.IT financial management is quite separate from the enterprise’s financial management.
- B.All IT service providers must carry out the three core financial processes of accounting, budgeting, and charging.
- C.The cost of the provision of IT services should always be visible to the customer.
- D.IT spending needs a business justification
- Answer & Explanation
- Report
Answer : [D]
Explanation :
Explanation :
| Option A is incorrect because IT finances are a subset of the enterprise’s finances, and the same rules and controls apply to it as to any other department. With regard to Option B, internal service providers may not necessarily charge for their services directly. Option C is incorrect because external service providers will not usually share this information, which would show their profit margins, to their customers. |
93.
Which of the following is an objective of financial management?
- A.Ensuring that customer expectations do not exceed what they are willing to pay for
- B.Helping the business to articulate the value of a service
- C.Ensuring that the service provider does not commit to services that they are not able to provide
- D.Ensuring that the service provider understands and is able to meet customer needs
- Answer & Explanation
- Report
Answer : [C]
Explanation :
Explanation :
| Ensuring that the service provider does not commit to services that they are not able to provide is one of the objectives of financial management. The other options are objectives of BRM. |
94.
What is the definition of budgeting?
- A.The process responsible for identifying the actual costs of delivering IT services, comparing them with budgeted costs, and managing variance from the budget
- B.A framework that allows the service provider to determine the costs of providing services
- C.The activity of predicting and controlling the spending of money
- D.The ability to understand the costs of a service relative to its business value
- Answer & Explanation
- Report
Answer : [C]
Explanation :
Explanation :
| Budgeting is defined as the activity of predicting and controlling the spending of money. |
95.
Which of the following responsibilities is not a responsibility of BRM?
- A.Identify customer needs (utility and warranty) and ensure that the service provider is able to meet these needs
- B.Strategic focus
- C.Deciding which services the service provider will deliver to meet customer needs
- D.Operational focus
- Answer & Explanation
- Report
Answer : [D]
Explanation :
Explanation :
| Business relationship management has a strategic, not an operational focus. It is also responsible for identifying customer needs, deciding which services the service provider will deliver to meet them, and ensuring that the service provider is able to meet them. |
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