ITIL ITIL Financial Management & Value Creation 2

Question 1

What is 'service valuation' in ITIL Service Strategy Financial Management?

Accepted Answer

Quantifying the value a service delivers to the business in financial terms

Answer

Service valuation translates the utility and warranty of a service into financial terms so stakeholders can compare cost versus benefit.

Question 2

Which cost classification describes expenses that vary directly with the volume of service consumption?

Accepted Answer

Variable costs

Answer

Variable costs scale with consumption, so higher service usage directly increases these costs, making them important for demand-driven financial planning.

Question 3

In ITIL, what is the purpose of a 'funding model' within Service Strategy?

Accepted Answer

To define how IT services will be paid for across their lifecycle

Answer

A funding model determines the financial mechanism—internal budget, chargeback, or profit center—used to sustain IT services throughout their lifecycle.

Question 4

What does 'cost modeling' help IT organizations achieve in Service Strategy?

Accepted Answer

Predict future costs and simulate the financial impact of service changes

Answer

Cost modeling enables organizations to forecast expenditures and simulate 'what-if' scenarios before committing to service changes or investments.

Question 5

Which ITIL Service Strategy principle states that IT services should deliver value that exceeds their cost?

Accepted Answer

Net benefit principle

Answer

The net benefit principle holds that services are justified only when the value they deliver—utility and warranty—exceeds the total cost of providing them.

ITIL - Intermediate Service Strategy Practice Test

ITIL - Intermediate Service Strategy Practice Test

ITIL ITIL Financial Management & Value Creation 2