DEVOPS-FOUNDATION practice question 5 of 10

Agile funding can be______

Full set: 40 questions
Answer options
A: Fixed cost
B: Continuous cost
C: Reviewed frequently
D: All of the Above Correct answer
Correct Answer:
D. All of the Above
Explanation

Agile funding models replace traditional, rigid annual budgeting cycles with flexible funding strategies tailored to continuous delivery. Agile funding can involve fixed costs, where dedicated value-stream teams are funded for specific time horizons to maintain predictable spend. It can also operate as a continuous cost model, aligning expenditures with persistent value streams rather than temporary, discrete projects. Crucially, Agile funding requires frequent reviews—such as quarterly or cadence-based revaluations—allowing organizations to dynamically reallocate capital based on real-time data, changing priorities, and delivered value. Because Agile financial management encompasses fixed envelopes, continuous funding flows, and regular governance cadences, "All of the Above" is the correct choice.

Why Incorrect

A. Fixed-cost team funding is a valid Agile budgeting pattern, but selecting only A ignores the continuous and frequent review aspects of Agile financial management.
B. Continuous cost allocation to persistent value streams is a core Agile funding practice, but selecting only B misses fixed-envelope and frequent review dimensions.
C. Frequent financial reviews are essential to Agile governance, but selecting only C fails to recognize that Agile funding can also encompass fixed and continuous structures.

References

Scaled Agile Framework (SAFe 6.0). "Lean Budgets". Scaled Agile, Inc. Section: "Value Stream Budgets and Governance". URL: https://scaledagileframework.com/lean-budgets/

Appelo, J. (2011). Management 3.0: Leading Agile Developers, Developing Agile Leaders. Addison-Wesley Professional. Chapter 10: "Agile Finance and Governance", pp. 185-202.

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