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

Lean portfolio management allocates capacity to stable agile teams, enabling continuous funding without project-by-project approval cycles.

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

A root cause analysis identifies whether the drop is due to technical debt, impediments, or scope issues before committing additional spend.

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

Cost of delay quantifies the economic value lost per unit of time when a feature or product is not yet available in the market.

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

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.

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

Portfolio ROI by value stream connects delivery output to business value, giving financial insight at the strategic portfolio level.

ADM - Agile Delivery Manager Certification Practice Test

ADM - Agile Delivery Manager Certification Practice Test

ADM Budgeting & Financial Management