ITIL Financial Management & Value Creation Flashcards
6 cards from real ITIL practice questions. Tap to flip, then mark Knew It or Still Learning โ missed cards come back until you master them.
Read the first 6 ITIL Financial Management & Value Creation flashcards as text
What is the significance of separating 'capital expenditure (CapEx)' from 'operational expenditure (OpEx)' in IT Service Strategy?
Answer: It affects accounting treatment, tax implications, and budget approval processes
CapEx and OpEx are treated differently in accounting and taxation, and distinguishing them affects how budgets are approved and reported to leadership.
In ITIL Service Strategy, what is 'business case' development primarily used for?
Answer: Justifying investment decisions by outlining costs, benefits, risks, and alternatives
A business case provides a structured justification for an investment decision, comparing costs, expected benefits, risks, and alternative approaches.
Which ITIL activity involves tracking actual IT spend against approved budgets and reporting variances?
Answer: Financial accounting and reporting
Financial accounting and reporting tracks actual expenditures against budgets, highlights variances, and provides data for corrective financial decisions.
What challenge does 'cost transparency' address in organizations that treat IT as a black box?
Answer: It enables business stakeholders to understand what IT costs and why
Cost transparency breaks down the IT 'black box' by showing stakeholders exactly what services cost, enabling informed decisions about spending priorities.
According to ITIL, what is 'financial risk' in the context of IT Service Strategy?
Answer: The potential negative financial impact from service investment decisions or cost overruns
Financial risk in Service Strategy refers to the potential for investment decisions or unexpected cost overruns to negatively impact the organization's financial position.
What is the relationship between 'demand management' and 'financial management' in ITIL Service Strategy?
Answer: Demand patterns directly influence financial forecasting and resource budgeting
Demand patterns identified through demand management feed directly into financial forecasting, helping organizations budget accurately for resource and service costs.