WGU C954 Information Technology
Management Practice Exam Questions
And Answers Plus Rationales Instant
Pdf Download
1. A multinational firm is implementing an enterprise-wide IT
governance framework. Which of the following best aligns IT
decision-making with corporate objectives while ensuring
compliance and accountability?
• A) ITIL Service Lifecycle
• B) COBIT Governance Model
• C) Agile Development Framework
• D) DevOps Continuous Delivery Pipeline
Answer: B. COBIT (Control Objectives for Information and Related
Technologies) is specifically designed as a governance framework
that aligns IT investments and decision-making with corporate
objectives, providing comprehensive structures for compliance and
accountability .
2. A CIO wants to evaluate IT project proposals based on risk-
adjusted return on investment. Which capital budgeting technique
should be applied?
,• A) Payback Period
• B) Net Present Value (NPV)
• C) Internal Rate of Return (IRR)
• D) Real Options Valuation
Answer: D. Real Options Valuation is a technique that evaluates
investment opportunities by considering the flexibility and options
available to management, allowing for a risk-adjusted assessment of
potential projects .
3. During a vendor contract negotiation, which clause is most critical
for ensuring data protection compliance under global privacy laws
such as GDPR?
• A) Termination-for-convenience clause
• B) Service Level Agreement (SLA) uptime guarantees
• C) Data Processing Addendum (DPA)
• D) Arbitration jurisdiction clause
Answer: C. A Data Processing Addendum (DPA) is a legally binding
document that outlines how a vendor will process and protect
personal data, making it essential for compliance with regulations
like GDPR .
4. An IT manager is evaluating whether to continue hosting services
on-premises or migrate to cloud infrastructure. Which financial
analysis method best compares total costs over time?
• A) Zero-based budgeting
, • B) Benchmarking analysis
• C) Total Cost of Ownership (TCO)
• D) Variance analysis
Answer: C. TCO is a financial estimate intended to help buyers and
owners determine the direct and indirect costs of a product or
system, providing a comprehensive comparison of on-premises
versus cloud costs over time .
5. Which of the following strategic IT alignment models emphasizes
supporting business strategy through IT investments rather than IT
dictating direction?
• A) Technology Push Model
• B) Business-IT Strategic Alignment Model
• C) Resource-Based View (RBV) of IT
• D) Balanced Scorecard IT Perspective
Answer: B. The Business-IT Strategic Alignment Model positions IT
as an enabler of business strategy, with business needs driving
technology investments. It emphasizes that IT should support and
be aligned with business goals .
6. Which type of system provides a high-level, consolidated view of
organizational performance using internal and external data,
specifically designed to assist senior-level managers in making non-
routine, strategic decisions?
• A) Transaction Processing System (TPS)
Management Practice Exam Questions
And Answers Plus Rationales Instant
Pdf Download
1. A multinational firm is implementing an enterprise-wide IT
governance framework. Which of the following best aligns IT
decision-making with corporate objectives while ensuring
compliance and accountability?
• A) ITIL Service Lifecycle
• B) COBIT Governance Model
• C) Agile Development Framework
• D) DevOps Continuous Delivery Pipeline
Answer: B. COBIT (Control Objectives for Information and Related
Technologies) is specifically designed as a governance framework
that aligns IT investments and decision-making with corporate
objectives, providing comprehensive structures for compliance and
accountability .
2. A CIO wants to evaluate IT project proposals based on risk-
adjusted return on investment. Which capital budgeting technique
should be applied?
,• A) Payback Period
• B) Net Present Value (NPV)
• C) Internal Rate of Return (IRR)
• D) Real Options Valuation
Answer: D. Real Options Valuation is a technique that evaluates
investment opportunities by considering the flexibility and options
available to management, allowing for a risk-adjusted assessment of
potential projects .
3. During a vendor contract negotiation, which clause is most critical
for ensuring data protection compliance under global privacy laws
such as GDPR?
• A) Termination-for-convenience clause
• B) Service Level Agreement (SLA) uptime guarantees
• C) Data Processing Addendum (DPA)
• D) Arbitration jurisdiction clause
Answer: C. A Data Processing Addendum (DPA) is a legally binding
document that outlines how a vendor will process and protect
personal data, making it essential for compliance with regulations
like GDPR .
4. An IT manager is evaluating whether to continue hosting services
on-premises or migrate to cloud infrastructure. Which financial
analysis method best compares total costs over time?
• A) Zero-based budgeting
, • B) Benchmarking analysis
• C) Total Cost of Ownership (TCO)
• D) Variance analysis
Answer: C. TCO is a financial estimate intended to help buyers and
owners determine the direct and indirect costs of a product or
system, providing a comprehensive comparison of on-premises
versus cloud costs over time .
5. Which of the following strategic IT alignment models emphasizes
supporting business strategy through IT investments rather than IT
dictating direction?
• A) Technology Push Model
• B) Business-IT Strategic Alignment Model
• C) Resource-Based View (RBV) of IT
• D) Balanced Scorecard IT Perspective
Answer: B. The Business-IT Strategic Alignment Model positions IT
as an enabler of business strategy, with business needs driving
technology investments. It emphasizes that IT should support and
be aligned with business goals .
6. Which type of system provides a high-level, consolidated view of
organizational performance using internal and external data,
specifically designed to assist senior-level managers in making non-
routine, strategic decisions?
• A) Transaction Processing System (TPS)
