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CGEIT · Question #197

An IT manager is trying to determine optimal IT service levels. Which of the following should be the PRIMARY consideration?

The correct answer is C. Cost-benefit analysis. When determining optimal IT service levels, the primary consideration should be a comprehensive cost-benefit analysis.

Submitted by lars.no· Apr 18, 2026Benefits Realization

Question

An IT manager is trying to determine optimal IT service levels. Which of the following should be the PRIMARY consideration?

Options

  • AInternal rate of return
  • BRecovery time objective (RTO)
  • CCost-benefit analysis
  • DResource utilization analysis

How the community answered

(21 responses)
  • A
    19% (4)
  • B
    5% (1)
  • C
    71% (15)
  • D
    5% (1)

Why each option

When determining optimal IT service levels, the primary consideration should be a comprehensive cost-benefit analysis.

AInternal rate of return

Internal rate of return (IRR) is a financial metric for evaluating investment profitability, which is a component of a larger cost-benefit analysis, but not the primary consideration for all aspects of service level optimization.

BRecovery time objective (RTO)

Recovery Time Objective (RTO) is a specific disaster recovery metric, important for business continuity, but it represents only one aspect of service levels and not the overall primary consideration for determining optimal levels across all services.

CCost-benefit analysisCorrect

Optimal IT service levels are a balance between the cost of providing a certain level of service and the benefits (or avoided costs/risks) that level of service brings to the business. A cost-benefit analysis helps an IT manager make informed decisions by evaluating the financial implications and value derived from different service level options, ensuring that investments in service quality are justified and aligned with business needs.

DResource utilization analysis

Resource utilization analysis helps in operational efficiency and capacity planning but does not directly determine the strategic optimal level of service in terms of business value and cost-effectiveness.

Concept tested: IT service level optimization

Source: https://learn.microsoft.com/en-us/azure/cloud-adoption-framework/strategy/return-on-investment

Topics

#IT Service Levels#Cost-Benefit Analysis#Value Optimization#IT Investment Decisions

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