810-440 · Question #95
Which two options are financial considerations related to determining business outcomes? (Choose two.)
The correct answer is A. Capital Expenditures, Operating Expenses. E. Chargeback, Show back.. Financial considerations for determining business outcomes involve categorizing expenses as capital or operational, and implementing mechanisms for cost allocation back to consuming business units.
Question
Which two options are financial considerations related to determining business outcomes? (Choose two.)
Options
- ACapital Expenditures, Operating Expenses.
- BInternal Return Rate, Discount Rate.
- CPayback, Chargeback.
- DCapital Expenditures, Working Capital.
- EChargeback, Show back.
How the community answered
(25 responses)- A88% (22)
- B8% (2)
- D4% (1)
Why each option
Financial considerations for determining business outcomes involve categorizing expenses as capital or operational, and implementing mechanisms for cost allocation back to consuming business units.
Capital Expenditures (CapEx) are funds used by a company to acquire, upgrade, and maintain physical assets, while Operating Expenses (OpEx) are the ongoing costs for running a business. Both CapEx and OpEx are fundamental financial considerations that directly impact a business's budget, profitability, and overall financial health when assessing business outcomes.
Internal Return Rate (IRR) and Discount Rate are metrics used in financial analysis for investment appraisal and project evaluation, not direct financial considerations or categories of expenditure themselves when determining business outcomes.
Payback is a financial metric indicating the time required to recoup an investment, and while Chargeback is a relevant financial mechanism, pairing them together as two distinct primary financial "considerations" in this context is less encompassing than CapEx/OpEx or Chargeback/Showback.
Working Capital is the difference between current assets and current liabilities, representing short-term liquidity, and while important for financial health, it's not a primary type of expenditure or cost allocation mechanism in the same vein as Capital Expenditures when determining business outcomes.
Chargeback and Show back are financial mechanisms used within organizations to attribute the cost of IT services to the business units consuming them. Chargeback involves actual billing, while Show back only reports costs without billing, both influencing perceived and actual financial outcomes for departments and the overall organization.
Concept tested: Financial considerations for business outcomes (CapEx, OpEx, Chargeback, Showback)
Source: https://learn.microsoft.com/en-us/azure/cloud-adoption-framework/manage/cost-management/chargeback
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