CGEIT Question #675: Real Exam Question with Answer & Explanation

Question

A board of directors is concerned with the total cost of IT. Which of the following is MOST important for the CIO to include in an explanation to the board?

Options

• AA summary of benefits that will be achieved once key IT initiatives are completed.
• BA mapping of IT employee roles to the balanced scorecard.
• CA benchmark of IT employee salary costs against comparable organizations.
• DA breakdown of operational versus capital expenditures.

Explanation

To address the board's concern about the total cost of IT, the CIO should primarily provide a clear breakdown of operational versus capital expenditures.

Common mistakes.

• A. A summary of benefits is important for justifying IT spend, but it doesn't directly address the 'total cost' concern in terms of financial structure and allocation.
• B. Mapping IT employee roles to a balanced scorecard is a detailed internal performance management tool and not the primary information needed by the board for overall cost understanding.
• C. Benchmarking IT employee salary costs provides a comparison for one component of OpEx but does not provide the comprehensive financial breakdown requested for 'total cost'.

Concept tested. Financial transparency for IT costs

Reference. https://learn.microsoft.com/en-us/azure/cloud-adoption-framework/plan/funding-models

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