ADM Budgeting & Financial Management

Question 1

Which budgeting approach aligns best with agile delivery by funding teams rather than projects?

Accepted Answer

Lean portfolio management with capacity allocation

Answer

Activity-based budgeting

Answer

Zero-based budgeting

Answer

Top-down annual fixed budgeting

Question 2

An Agile Delivery Manager notices sprint velocity has dropped while burn rate remains constant. What is the most appropriate immediate action?

Accepted Answer

Conduct a root cause analysis and adjust the sprint plan

Answer

Increase the team's headcount immediately

Answer

Request an emergency budget increase from stakeholders

Answer

Cancel the current sprint and restart planning

Question 3

What does 'cost of delay' represent in agile financial management?

Accepted Answer

The cumulative economic impact of not delivering a feature sooner

Answer

The penalty clause in a vendor contract for late delivery

Answer

The overhead cost incurred during a sprint delay

Answer

The additional cost of rework due to defects found late

Question 4

In an agile context, what is a rolling wave budget?

Accepted Answer

A budget that is detailed for near-term periods and kept high-level for future periods

Answer

A budget that resets to zero at each sprint boundary

Answer

A fixed annual budget divided evenly across sprints

Answer

A budget that escalates automatically based on team velocity

Question 5

Which metric best helps an Agile Delivery Manager track financial health at the portfolio level?

Accepted Answer

Portfolio economic return on investment (ROI) by value stream

Answer

Individual story point completion rate

Answer

Number of user stories completed per sprint

Answer

Total lines of code produced per quarter

Question 6

When using throughput-based forecasting, what does an Agile Delivery Manager primarily rely on to predict project costs?

Accepted Answer

Historical cycle time and throughput data

Answer

Earned value management (EVM) calculations

Answer

Stakeholder-estimated story points

Answer

Fixed-price vendor quotes

Question 7

How does an Agile Delivery Manager typically handle unplanned work that exceeds the sprint budget?

Accepted Answer

Defer it to the backlog for prioritization in the next planning cycle

Answer

Automatically approve the overage and report it post-sprint

Answer

Immediately stop all current sprint work to address it

Answer

Renegotiate the entire project contract with the client