Budgeting & Financial Management Flashcards
7 cards from real ADM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Budgeting & Financial Management flashcards as text
Which budgeting approach aligns best with agile delivery by funding teams rather than projects?
Answer: Lean portfolio management with capacity allocation
Lean portfolio management allocates capacity to stable agile teams, enabling continuous funding without project-by-project approval cycles.
An Agile Delivery Manager notices sprint velocity has dropped while burn rate remains constant. What is the most appropriate immediate action?
Answer: Conduct a root cause analysis and adjust the sprint plan
A root cause analysis identifies whether the drop is due to technical debt, impediments, or scope issues before committing additional spend.
What does 'cost of delay' represent in agile financial management?
Answer: The cumulative economic impact of not delivering a feature sooner
Cost of delay quantifies the economic value lost per unit of time when a feature or product is not yet available in the market.
In an agile context, what is a rolling wave budget?
Answer: A budget that is detailed for near-term periods and kept high-level for future periods
Rolling wave budgeting provides detailed financial planning for the near term while leaving future periods at a higher-level estimate, matching agile's iterative nature.
Which metric best helps an Agile Delivery Manager track financial health at the portfolio level?
Answer: Portfolio economic return on investment (ROI) by value stream
Portfolio ROI by value stream connects delivery output to business value, giving financial insight at the strategic portfolio level.
When using throughput-based forecasting, what does an Agile Delivery Manager primarily rely on to predict project costs?
Answer: Historical cycle time and throughput data
Throughput-based forecasting uses historical delivery rates (items completed per period) to predict future output and associated costs without requiring story point estimation.
How does an Agile Delivery Manager typically handle unplanned work that exceeds the sprint budget?
Answer: Defer it to the backlog for prioritization in the next planning cycle
Unplanned work is captured in the backlog so the product owner and team can prioritize it against current commitments, protecting the budget boundary.