CGEIT Benefits Realization Practice Test 2 — 15 Questions

Question 1

A project is expected to deliver cost savings through automation. Which metric is the best indicator of this benefit?

Accepted Answer

The reduction in manual labor hours per transaction.. The reduction in labor hours or headcount cost is a direct measure of automation benefits.

Answer

The number of users trained on the new system.

Answer

The number of systems upgraded.

Answer

The total budget spent on software licenses.

Question 2

When a project is integrated into an enterprise portfolio, what is the governance board's main responsibility regarding benefits?

Accepted Answer

To monitor the realization of benefits and authorize corrective action if necessary.. The governance board ensures that the investment remains aligned with enterprise strategy and that the benefits are being realized as planned.

Answer

To conduct daily meetings with the development team.

Answer

To write the detailed technical specification for the project.

Answer

To manage the daily vendor relationship.

Question 3

Which of the following is an example of an 'indirect' benefit?

Accepted Answer

Improved employee morale and productivity due to better UI.. Indirect benefits are intangible or non-monetary improvements, such as improved brand reputation or employee morale.

Answer

Increased revenue from new digital sales channels.

Answer

Decrease in server hardware acquisition costs.

Answer

Reduction in annual software maintenance costs.

Question 4

Why should benefit realization planning start at the inception of an IT investment?

Accepted Answer

To ensure that the desired business outcomes are clearly defined and measurable.. Early planning ensures that the project is designed with the end-state business objectives in mind.

Answer

To secure the budget before the project is approved.

Answer

To identify technical risks in the software architecture.

Answer

To ensure that the project team is selected correctly.

Question 5

Which of the following describes the 'Benefit Dependency Network' (BDN)?

Accepted Answer

A visualization of how investments and changes lead to business benefits.. The BDN maps the relationships between IT deliverables, business changes, and final strategic outcomes.

Answer

A network diagram of project team communication channels.

Answer

A list of all server interdependencies.

Answer

A schedule of hardware maintenance updates.

Question 6

A dashboard shows that an IT project has achieved 90% of its technical deliverables, but only 20% of its anticipated benefits. What is the most appropriate management action?

Accepted Answer

Review the benefits realization plan to assess organizational change progress.. A gap between delivery and benefit usually implies a problem with adoption, business change, or strategy execution.

Answer

Reduce the budget for the remainder of the project.

Answer

Accelerate the technical project completion to reach 100%.

Answer

Lower the benefit targets to match the current progress.

Question 7

Which TWO of the following steps are critical when performing a benefits-based business case review?

Accepted Answer

Comparing current project performance against the business case.. Reviewing requires checking against the plan and assessing the continued relevance of the business case.

Answer

Updating the project team's contact list.

Answer

Checking if the project complies with the latest IT security standards.

Answer

Reviewing the technical code repository.

Question 8

An IT project is nearing completion. Which activity best signifies that the 'Value Delivery' phase is beginning?

Accepted Answer

The business operations teams begin using the system to execute new processes.. Value delivery occurs when the solution is operationalized and the business starts changing to realize the benefits.

Answer

The project management office closes the project file.

Answer

The vendor invoice is paid in full.

Answer

The final code is checked into the repository.

Question 9

What is the primary benefit of categorizing IT investments into a portfolio?

Accepted Answer

To balance the investment mix between innovation, growth, and maintenance.. Portfolio management allows the organization to balance risk, return, and strategic alignment across all investments.

Answer

To ensure every project is completed at the same time.

Answer

To force all projects to use the same software vendor.

Answer

To reduce the cost of IT staff salaries.

Question 10

In the context of benefits realization, what is a 'leading indicator'?

Accepted Answer

The adoption rate of a new system during the pilot phase.. A leading indicator is a metric that predicts a future outcome, often used before the full benefit is realized.

Answer

The final revenue growth reported at year-end.

Answer

The number of users who attended training sessions.

Answer

The total cost of the project.

Question 11

Which TWO factors are essential for a successful benefits realization culture?

Accepted Answer

A focus on learning from both successes and failures.. A culture of benefits realization requires accountability and a focus on measurement rather than blame.

Answer

Requiring all employees to learn programming.

Answer

Frequent updates to the technical architecture.

Answer

Reducing the number of board meetings.

Question 12

Which of the following is an example of a financial benefit?

Accepted Answer

Reduced annual operating expenses due to process automation.. Financial benefits are those that directly impact the organization's bottom line.

Answer

Enhanced brand reputation.

Answer

Improved employee morale.

Answer

Increased customer satisfaction scores.

Question 13

When assessing the feasibility of a project, why is it necessary to evaluate the 'risk of benefit realization'?

Accepted Answer

To determine if the expected value can realistically be achieved under current conditions.. If the risk of not achieving the benefit is too high, the project might not be a sound investment regardless of its cost.

Answer

To ensure the project follows the vendor's best practices.

Answer

To ensure the technical project has no bugs.

Answer

To reduce the number of stakeholders involved.

Question 14

Which THREE activities are required when managing the 'Benefits Lifecycle'?

Accepted Answer

Tracking the realization of benefits after implementation.. The lifecycle includes planning, execution/monitoring, and post-project review.

Answer

Reducing the number of project stakeholders.

Answer

Updating the project's source code documentation.

Question 15

When benefits are reported as 'percentage of goal achieved', what is a potential risk?

Accepted Answer

Percentages may hide the underlying absolute values and total costs.. Percentages can mask the absolute scale of the benefit or the cost incurred to achieve it.

Answer

Percentages are too difficult for stakeholders to understand.

Answer

Percentages cannot be calculated for IT projects.

Answer

Percentages are always accurate.