PRINCE2F Practice Test 34 — 15 Questions

Question 1

During a stage, a team manager reports that a key product will be delivered two weeks late due to resource constraints. The project manager updates the stage plan and finds that the stage tolerance for time is about to be exceeded. What is the first action the project manager should take?

Choose an answer to begin — your selection is scored in the full session.

Accepted Answer

Issue an exception report to the project board. The project manager must escalate the issue to the project board because the stage tolerance for time is about to be exceeded. According to PRINCE2, when a forecast indicates that a stage will exceed its tolerances, the project manager must produce an Exception Report and submit it to the project board, which then decides on corrective action. This is a mandatory escalation step to maintain management by exception.

Answer

Revise the project plan to absorb the delay

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Reassign resources to the delayed product

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Request a concession from the project board

Question 2

Which of the following statements best describes the PRINCE2 principle 'Manage by stages'?

Accepted Answer

The project is divided into a number of phases, each with its own plan and tolerances. The PRINCE2 principle 'Manage by stages' requires that the project be divided into management stages, each with its own plan and tolerances. This allows the Project Board to review progress and viability at key decision points before committing further resources, ensuring ongoing business justification and control.

Answer

The project plan is updated at the end of each stage to reflect actual progress

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Stages are defined by the Project Manager to facilitate team management

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Each stage must have a fixed duration and budget

Question 3

A project manager is creating the Project Initiation Documentation. Which document must be produced before the Initiation Stage can be considered complete?

Accepted Answer

Project Initiation Documentation. In PRINCE2, the Project Initiation Documentation (PID) is the key deliverable of the Initiation Stage. The stage is not considered complete until the PID has been created and approved, as it provides the foundation for project governance and decision-making. The Business Case, Project Plan, and Risk Register are all components that are assembled into the PID, but the PID itself is the definitive document that marks stage completion.

Answer

Business Case

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Project Plan

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Risk Register

Question 4

What is the difference between a Highlight Report and a Checkpoint Report?

Accepted Answer

Highlight Report is from Project Manager to Project Board; Checkpoint Report is from Team Manager to Project Manager. In PRINCE2, the Highlight Report is a formal report from the Project Manager to the Project Board, summarizing progress, risks, and issues at a stage level. The Checkpoint Report is a detailed report from the Team Manager to the Project Manager, covering work package progress at a team level. This distinction ensures the right level of detail reaches the appropriate management layer.

Answer

Highlight Report is from Team Manager to Project Manager; Checkpoint Report is from Project Manager to Project Board

Answer

Both are from Project Manager to Project Board

Answer

Both are from Team Manager to Project Manager

Question 5

In PRINCE2, what is the role of the Senior User?

Accepted Answer

To specify the desired outcomes and benefits. The Senior User in PRINCE2 is responsible for specifying the desired outcomes and benefits of the project, ensuring that the project delivers products that meet user needs and enable the expected benefits. This role represents the interests of those who will use the project's outputs and is accountable for defining the user requirements and acceptance criteria.

Answer

To chair the Project Board

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To manage the project on a day-to-day basis

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To provide resources and expertise

Question 6

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

Accepted Answer

Raise an Exception Report to the Project Board and await their direction. In PRINCE2, when a project forecasts exceeding its cost tolerance, the Project Manager must escalate the issue to the Project Board via an Exception Report. This is a formal mechanism to request a decision on corrective action, as the Project Manager does not have authority to change tolerances or budgets. The Project Board then evaluates the situation and provides direction, ensuring governance and control over the project's viability.

Answer

Increase the project budget and continue with the current plan

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

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

Question 7

Refer to the exhibit. According to PRINCE2, to whom should the Team Manager report the potential delay?

Accepted Answer

The Project Manager, Sarah Lee. In PRINCE2, the Team Manager is responsible for delivering the work package and reports to the Project Manager on progress, issues, and risks. The Project Manager (Sarah Lee) is the single point of contact for the Team Manager within the project management team. Therefore, any potential delay must be reported to the Project Manager, who will then escalate to the Project Board if necessary.

Answer

The Executive, John Smith

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The Project Assurance, Peter Black

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The Senior User, Mary Johnson

Question 8

In PRINCE2, what is the definition of quality?

Accepted Answer

Fit for purpose. In PRINCE2, quality is defined as 'fit for purpose,' meaning the product meets the stated requirements and is suitable for its intended use. This definition aligns with the PRINCE2 principle of continued business justification, ensuring the product delivers value to the stakeholders. It is not merely about conformance to specification or zero defects, but about satisfying the user's needs in the operational environment.

Answer

Customer satisfaction

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Conformance to specification

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Zero defects

Question 9

During Initiation, the project manager discovers that a key assumption in the Business Case is invalid. What should the PM do first?

Accepted Answer

Update the Business Case. The Business Case is the key driver for the project, and if a fundamental assumption is invalid, the project manager must first update the Business Case to reflect the new reality. This ensures that the project remains viable and that the Project Board can make an informed decision about whether to continue. Updating the Business Case is the correct first step because it provides the basis for any subsequent decisions, such as escalating to the Project Board.

Answer

Ignore the assumption

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Stop the project

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Inform the Project Board

Question 10

During the Controlling a Stage process, the Project Manager receives a Checkpoint Report from a Team Manager. What should the Project Manager do next?

Accepted Answer

Review the report, update the Stage Plan and logs as necessary, and compile the next Highlight Report. In the Controlling a Stage process, the Project Manager's immediate responsibility upon receiving a Checkpoint Report is to review it for progress against the Stage Plan, update the Stage Plan and any relevant logs (e.g., Issue Register, Risk Register) with new information, and then compile the next Highlight Report for the Project Board. This ensures accurate monitoring and control of the stage, aligning with PRINCE2's management by exception principle.

Answer

File the report without action

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Forward the Checkpoint Report to the Project Board immediately

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Issue a new Work Package

Question 11

A project is in the Initiating a Project process. Which document is the key output of this process?

Accepted Answer

Project Initiation Documentation. The Project Initiation Documentation (PID) is the key output of the Initiating a Project process, consolidating all the management approaches and plans.

Answer

Work Package

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Project Brief

Answer

End Stage Report

Question 12

Which role is responsible for maintaining the Business Case throughout the project?

Accepted Answer

Project Manager. The Project Manager is responsible for maintaining the Business Case throughout the project because PRINCE2 requires the Business Case to be a living document that is reviewed and updated at each stage boundary. The Project Manager ensures that the project remains viable by monitoring costs, benefits, and risks against the approved Business Case, and escalates any deviations to the Project Board. This role is distinct from the Executive, who owns the Business Case and provides the initial justification, but the day-to-day maintenance and tracking fall to the Project Manager.

Answer

Senior Supplier

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Project Support

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Executive

Question 13

Who is responsible for maintaining the Business Case throughout the project?

Accepted Answer

Project Manager. The Project Manager is responsible for maintaining the Business Case throughout the project because they manage day-to-day activities, monitor progress against the Business Case, and escalate any deviations to the Project Board. PRINCE2 assigns this operational responsibility to the Project Manager to ensure the Business Case remains viable and aligned with project objectives.

Answer

Executive

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Senior User

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Project Support

Question 14

During a project, the cost-benefit ratio becomes unfavorable. What is the first action the project manager should take?

Accepted Answer

Request a formal review of the Business Case by the project board. In PRINCE2, the Business Case is the key document for justifying the project's continued viability. When the cost-benefit ratio becomes unfavorable, the project manager must escalate this issue to the project board, which holds the authority to approve changes to the Business Case or decide on project continuation. Option D is correct because the project manager's first action is to request a formal review by the project board, as per the 'continued business justification' principle and the 'manage by stages' theme.

Answer

Update the Business Case without informing the board

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Reduce project scope to cut costs

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Stop the project immediately

Question 15

During the Controlling a Stage process, the Project Manager identifies that the project is forecast to exceed the agreed cost tolerance for the current stage. What should the Project Manager do?

Accepted Answer

Raise an Exception Report to the Project Board and await their direction before proceeding. When a stage tolerance is forecast to be exceeded, the Project Manager must escalate to the Project Board via an Exception Report. This is management by exception.

Answer

Continue with the current Stage Plan and report the cost overrun in the next Highlight Report

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

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Increase the project budget to absorb the additional cost and continue with the current Stage Plan