Which of the Following BEST Describes an Operational Level Agreement

question 408

Multiple Choice

Which of the following BEST describes an operational level agreement (OLA) ?

• A) It contains targets that underpin those within an SLA to ensure that targets will not be breached by failure of the supporting activity.
• B) It is an agreement between a supplier and another part of the same organization that assists with the provision of services.
• C) It is a written agreement between a supplier and the IT customer(s), defining the key service targets and responsibilities of both parties.
• D) It is a legally binding contract outlining services delivered to an IT service provider that underpin a service that provider delivers to its customers.

---

Definitions:

Contribution Margin

The amount of revenue from sales that exceeds variable costs, contributing to covering fixed costs and generating profit.

Variable Expenses

Costs that change in relation to the business’s activity level or volume, similar to variable costs.

Fixed Expenses

Costs that do not vary with the level of production or sales within a certain range.

Special Order

An order for goods or services that is outside the company's normal scope of work, which can often require a unique pricing strategy and cost analysis.