WorksheetsModule 2: Language of FinOps and Cloud
Total questions: 20
Worksheet time: 7mins
What does the term Lexicon mean in the context of FinOps?
A cloud billing tool
A financial report used by Finance teams
A common set of terminology used to communicate financial concepts
A cloud provider pricing model
What is the main purpose of Cost Allocation?
To reduce cloud costs automatically
To distribute costs across departments, projects, or business units
To forecast future budgets
To eliminate cloud waste
Which of the following best describes Cloud Spend?
Money spent only on cloud hardware
The cost of on-premise infrastructure
The total amount an organisation spends on cloud services
Only the cost of cloud storage
What is Budget Forecasting used for?
Tracking past cloud invoices
Predicting future financial outcomes using data and trends
Allocating costs to teams
Detecting cloud waste
What is the goal of Cost Optimisation?
To stop all cloud spending
To reduce costs without affecting business objectives
To move everything on-premise
To increase performance regardless of cost
Unit Economics helps organisations understand:
Total company profit
Cloud provider pricing
Profitability per product or service unit
Annual budgeting cycles
Which statement correctly describes CapEx and OpEx?
CapEx is for daily operations; OpEx is for long-term assets
CapEx is cloud spending; OpEx is on-premise spending
CapEx is for acquiring or upgrading assets; OpEx is for day-to-day operations
Both terms mean the same thing
What is Cloud Waste?
Unused on-premise hardware
Resources that are idle or underused but still cost money
Data loss in the cloud
Budget overruns caused by forecasting errors
What is the key difference between Showback and Chargeback?
Showback reduces costs; Chargeback increases costs
Showback reports costs; Chargeback reallocates costs back to teams
Showback is manual; Chargeback is automated
They are the same concept
What are the three phases of the FinOps Lifecycle?
Plan, Build, Run
Analyse, Budget, Spend
Inform, Optimise, Operate
Design, Deploy, Maintain
In business language, what does a Workload represent compared to an Instance?
The physical server
The operating system
The specific task or application running on the server
The cloud provider
From a business perspective, what is Object Storage?
A virtual machine
A digital warehouse for files and data
A database engine
A network service
What is the business meaning of a Database Service?
A tool for managing structured data
A backup system
A networking component
A compute instance
Why is a Load Balancer important from a business viewpoint?
It reduces storage costs
It distributes work evenly to improve performance and reliability
It replaces databases
It forecasts budgets
How does Auto Scaling create business value?
It increases fixed infrastructure costs
It guarantees unlimited capacity
It ensures the business only pays for needed computing power
It removes the need for monitoring
In business language, what does Scalability mean?
The number of servers used
The system’s ability to handle increased demand efficiently
Automatic billing optimisation
Network speed
What is Connectivity in business terms?
Physical network cables
Cloud regions
The ability for systems and devices to communicate and share data
A security control
What is the main goal of creating a “Babel Fish” between DevOps and Finance teams?
To reduce cloud providers
To replace Finance teams
To enable shared understanding and effective communication
To automate all decisions
Which step focuses on creating a shared vocabulary between DevOps and Finance?
Establish Common Goals
Define a Common Language
Share Data and Insights
Leverage Automation and Tools
Why is cross-training important in a FinOps culture?
It replaces specialised roles
It eliminates the need for tools
It bridges knowledge gaps and improves collaboration
It reduces reporting requirements
