Governance of Enterprise IT (CGEIT) Certification Practice Exam

What is essential for achieving better alignment related to IT costs?

1. Regular audits of IT spending

2. Having business units bear the full cost of IT systems

3. Centralizing all IT functions

4. Using outdated accounting methods

The correct answer is: Having business units bear the full cost of IT systems

Achieving better alignment related to IT costs involves ensuring that the investments made in IT reflect the actual needs and contributions of the business units. Having business units bear the full cost of IT systems can lead to more responsible spending and closer scrutiny of IT expenses by those who directly benefit from the services. When business units are accountable for their IT costs, they are more likely to prioritize investments based on their strategic objectives, ultimately enhancing the alignment between IT spending and business goals. This approach encourages transparency and fosters a culture where business units actively participate in decision-making regarding IT expenditures. This not only optimizes resource allocation but also helps in identifying the value derived from IT investments, which is crucial for better alignment. In contrast, regular audits of IT spending could help monitor efficiency but may not directly improve alignment. Centralizing all IT functions might make management more streamlined, but it doesn't inherently ensure that costs align well with business unit needs. Using outdated accounting methods could obscure the true costs and value of IT investments, hindering effective decision-making rather than enhancing alignment.