Understand the Concepts of Value, Outcomes, Costs & Risks and Their Relationships to Direction, Planning and Improvement (1.8) ITIL-4-STRATEGIC-LEADER-MODULES Practice Questions (Page 1)

Questions 1–5

1. 1foundation · easy

   How do value, outcomes, costs, and risks interact when making decisions about service improvement?

   • AThey are used to calculate the exact financial return of a service
   • BThey are balanced to determine whether the potential benefits justify the costs and risks
   • CThey are considered independently, with each factor evaluated in isolation
   • DThey are only considered after a service has failed
   Reveal Solution Discussion Select an answer first
2. 2application · medium

   A retail company is deciding whether to invest in a new customer loyalty platform. The platform is expected to increase repeat purchases (an outcome). The project will require a significant upfront investment in software licenses and a new team to manage it. The company's leadership is concerned that the platform may become obsolete within two years. Which of the following best describes how the leadership should use the concepts of value, outcomes, costs, and risks in this decision?

   • AReject the platform if there is any risk of obsolescence, as risks must be eliminated.
   • BAssess whether the value of the increased repeat purchases is greater than the total cost and the risk of obsolescence.
   • CCompare the cost of the platform to the cost of the current loyalty program.
   • DFocus only on the expected increase in repeat purchases, as this is the primary outcome.
   Reveal Solution Discussion Select an answer first
4. 3application · medium

   A manufacturing company is considering moving its on-premises ERP system to a cloud provider. The finance department calculates the subscription fees and the cost of migrating data. The operations team notes that the cloud provider's support costs are bundled into the subscription, but the company will need to spend internal staff time to manage the new environment. Which of the following best describes the costs the company is evaluating?

   • ADirect costs only, because the subscription fee is the primary cost of the service.
   • BBoth direct costs (subscription, migration) and indirect costs (internal staff time for management).
   • CIndirect costs only, because the internal staff time is an overhead.
   • DOpportunity costs, because the money spent on the cloud could have been used elsewhere.
   Reveal Solution Discussion Select an answer first
5. 4foundation · easy

   In ITIL 4, what is an 'outcome'?

   • AA result for a stakeholder enabled by one or more outputs
   • BA tangible deliverable produced by a service
   • CThe cost incurred by the consumer to use a service
   • DThe risk that a service may fail to perform as expected
   Reveal Solution Discussion Select an answer first
6. 5foundation · easy

   Which of the following is an example of a direct cost in service provision?

   • AThe cost of electricity for the corporate headquarters
   • BThe salary of the organization's CEO
   • CThe cost of software licenses used exclusively by one service
   • DThe cost of general marketing campaigns for the entire organization
   Reveal Solution Discussion Select an answer first