In Scrum, how would budgeting and financial forecasting be performed?

• A. Frequently inspect the outcomes of the delivered Sprint Increments to understand how much value is being produced per investment spent
• B. A single release may be funded with several Sprints where every Sprint is producing shippable increments
• C. Budgeting and forecasting occur only after each release
• D. Budgets are fixed and never adjusted during the project

Answer: (A)

The main idea here is that budgeting and forecasting in Scrum are ongoing and adaptive, based on real results from the work you’ve completed. By frequently inspecting the outcomes of the Sprint Increments, you can see how much value is actually being produced relative to the investment spent. This live feedback lets you adjust plans, priorities, and funding in a timely way to maximize return on investment.

As work progresses, each Sprint delivers a potentially shippable Increment, offering concrete visibility into value delivered. Using that insight, the Product Owner and stakeholders can refine forecasts and budgets, reallocating funding if the observed value per cost improves or declines. This contrasts with fixed or late budgeting, and with assuming a single, long funding cycle without ongoing assessment.

So, budgeting and forecasting are iterative activities tied to actual increments and their value, not a one-time or fixed process.