PRINCE2F PRINCE2 Processes Practice Questions

Question 1

A project manager is planning a project and needs to decide at which point the project board should approve the project's initiation. According to PRINCE2, which process is responsible for obtaining approval to proceed with the initiation stage?

Accepted Answer

Directing a Project. In PRINCE2, the 'Directing a Project' process is responsible for the project board's key decision-making activities, including authorizing project initiation. The project board must approve the initiation stage before the project manager can proceed with detailed planning. This approval is obtained during the 'Directing a Project' process, not during the 'Starting up a Project' or 'Initiating a Project' processes.

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Initiating a Project

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Starting up a Project

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Managing a Stage Boundary

Question 2

During the Managing a Stage Boundary process, the project manager produces an End Stage Report for the current stage and a Stage Plan for the next stage. However, the project board rejects the Stage Plan. What is the project manager's next course of action according to PRINCE2?

Accepted Answer

Issue an Exception Report to the project board recommending project closure. When the Project Board rejects the Stage Plan during the Managing a Stage Boundary process, the project cannot proceed as intended. PRINCE2 requires the Project Manager to issue an Exception Report to the Project Board, recommending project closure if the plan is not approved, because the project has no authorized plan to continue and the board must decide whether to close or take alternative action.

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Revise the Stage Plan and resubmit it to the project board

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Escalate to the program or corporate management for a decision

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Proceed with the next stage as planned, then report to the project board at the next review

Question 3

A project is in the Initiating a Project process. The project manager is creating the Project Plan. Which management product should be used as a key input for developing the Project Plan?

Accepted Answer

Project Brief. The Project Brief is the correct key input because it contains the high-level scope, objectives, and constraints that define the project's boundaries. During the Initiating a Project process, the Project Plan is developed by elaborating on the information in the Project Brief, ensuring the plan aligns with the project's initial justification and requirements.

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Business Case

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Risk Register

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Configuration Item Records

Question 4

Which TWO statements about the Managing Product Delivery process are correct?

Accepted Answer

It is the process where the project manager assigns work packages to team managers.. The Managing Product Delivery process is where the Project Manager assigns work packages to Team Managers. This process focuses on the acceptance, execution, and delivery of work packages, ensuring that the team manager receives clear requirements and acceptance criteria. It bridges the gap between the Project Manager's planning and the team's execution.

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It is the process where the project board reviews the Business Case.

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It is the process where the project manager authorizes work packages.

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It is the process where the Stage Plan is created for the next stage.

Question 5

Which TWO statements about the Initiating a Project process are correct?

Accepted Answer

The Project Initiation Documentation is produced during this process.. Option B is correct because the Initiating a Project process is where the Project Initiation Documentation (PID) is assembled from the project brief and other inputs, forming the baseline for the project. Option D is correct because during Initiating a Project the outline business case from Starting up a Project is refined and updated with detailed time and cost estimates as part of the PID. Option A is incorrect because the project manager is appointed in Starting up a Project, not Initiating a Project. Option C is incorrect because the PID is produced in Initiating a Project, not in Starting up a Project. Option E is incorrect because the project brief is created in Starting up a Project and is an input to Initiating a Project.

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The project manager is appointed during this process.

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The Project Initiation Documentation is created in Starting up a Project.

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The project brief is created during this process.

Question 6

Refer to the exhibit. The project manager is reviewing a completed work package in Stage 2. The actual cost exceeds the planned cost by $5,000. What should the project manager do?

Accepted Answer

Escalate the issue to the project board as an exception.. The work package is complete but the actual cost exceeds the planned cost by $5,000, which exceeds the tolerance set for the work package. In PRINCE2, any deviation beyond the agreed tolerance must be escalated to the Project Board as an exception, as the Project Manager cannot approve such variances themselves.

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Update the project plan to reflect the actual cost.

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Record the actual cost and continue with the project.

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Accept the variance as the work package is complete.

Question 7

A Project Manager is planning the next stage. The current stage is on track and within tolerance. Which process is being performed?

Accepted Answer

Managing a Stage Boundary. The Managing a Stage Boundary process is performed at the end of each stage (except the final stage) to plan the next stage, update the business case, and assess project viability. Since the current stage is on track and within tolerance, the Project Manager is executing this process to prepare for the next stage by producing a Stage Plan and an Exception Report if needed.

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Directing a Project

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Controlling a Stage

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Initiating a Project

Question 8

Which document is the key output of the Initiating a Project process?

Accepted Answer

Project Initiation Documentation. The Initiating a Project process produces the Project Initiation Documentation (PID) as its key output. The PID consolidates all the information needed to justify the project, define its scope, and establish the baselines for plans, risks, and controls. It is the definitive document that authorizes the project to proceed into the Delivery Stages.

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Project Brief

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End Stage Report

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Exception Report

Question 9

What is the purpose of the Starting Up a Project process?

Accepted Answer

To ensure there is a viable Business Case and that the project team is appointed. The Starting Up a Project (SU) process is the first process in PRINCE2, and its purpose is to ensure that the prerequisites for initiating a project are in place. Specifically, it answers the question 'Do we have a viable and worthwhile project?' by creating the outline Business Case and appointing the project team (including the Project Manager and Project Board). It also produces the Project Brief, which is used as the basis for the Initiating a Project process. Therefore, option C correctly captures the dual purpose of establishing a viable Business Case and appointing the team.

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To approve the project mandate

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To manage the delivery of products

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To develop the Project Initiation Documentation

Question 10

A project is forecast to exceed its stage cost tolerance. What should the Project Manager do?

Accepted Answer

Raise an Exception Report to the Project Board and await direction. In PRINCE2, when a project manager forecasts that stage cost tolerance will be exceeded, they must escalate the issue to the Project Board by raising an Exception Report. This is because the Project Manager operates within delegated tolerances; exceeding them requires board-level decision-making to assess the impact on the Business Case and authorize corrective action. The Exception Report triggers an Exception Plan, ensuring governance is maintained.

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Close the project immediately as the Business Case is no longer viable

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Continue with the current plan and report the overrun in the next Highlight Report

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Request more budget from the Project Board

PRINCE2 Processes

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