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Exam CGEIT topic 1 question 80 discussion

Actual exam question from Isaca's CGEIT
Question #: 80
Topic #: 1
[All CGEIT Questions]

After shifting from lease to purchase of IT infrastructure and software licenses, an enterprise has to pay for unexpected lease extensions causing significant cost overruns. The BEST direction for the IT steering committee would be to establish:

  • A. a program to annually review financial policy on overruns.
  • B. an end-of-life program to remove aging infrastructure from the environment.
  • C. budget cuts to compensate for the cost overruns.
  • D. a policy to consider total cost of ownership in investment decisions.
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Suggested Answer: D 🗳️

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SuperMax
10 months, 3 weeks ago
Selected Answer: D
D. a policy to consider total cost of ownership in investment decisions. The best direction for the IT steering committee would be to establish a policy to consider the total cost of ownership (TCO) in investment decisions. Shifting from lease to purchase of IT infrastructure and software licenses involves considering not just the initial acquisition costs but also the ongoing expenses associated with maintenance, support, upgrades, and unexpected costs such as lease extensions. By incorporating TCO considerations into investment decisions, the IT steering committee can ensure that all relevant costs are taken into account upfront, helping to prevent unexpected cost overruns in the future.
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Frank1480
1 year, 7 months ago
The best direction for the IT steering committee, in this case, would be: B. An end-of-life program to remove aging infrastructure from the environment. Establishing an end-of-life program would be the most appropriate response to address the issue of unexpected lease extensions and cost overruns. This program focuses on identifying and retiring aging infrastructure, which could potentially lead to costly extensions or maintenance fees. By proactively removing outdated or inefficient equipment and software from the environment, the enterprise can avoid unnecessary expenses and streamline their IT infrastructure.
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