PRINCE2F Practice Test 47 — 15 Questions

Question 1

In product-based planning, what is the purpose of a Product Flow Diagram?

Accepted Answer

To show the sequence and dependencies of product creation. A Product Flow Diagram shows the order in which products will be developed and the dependencies between them. It is a key input to the activity network.

Answer

To show the hierarchical breakdown of products

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To identify the resources needed for each product

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To list the quality criteria for each product

Question 2

Which TWO of the following are outputs of the Starting Up a Project process?

Accepted Answer

Daily Log. SU produces the Project Brief, Daily Log, and Initiation Stage Plan. PID is from IP.

Answer

Project Initiation Documentation

Answer

Benefits Management Approach

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End Stage Report

Question 3

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

Accepted Answer

To confirm that the project is viable and worthwhile before committing to detailed planning. SU is a pre-project process that ensures basic conditions exist before deciding to proceed with initiation. It does not formally start the project; that happens in IP.

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To manage the day-to-day activities of the project

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To close the project in a controlled manner

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To produce the Project Initiation Documentation

Question 4

A project manager is preparing the End Stage Report for the second stage. The project's planned budget for the stage is $500,000, but actual costs are $520,000. The project board is concerned about cost overrun. What is the most appropriate action for the project manager?

Accepted Answer

Include the cost variance and updated forecast in the End Stage Report and submit it.. The End Stage Report is the formal mechanism to report stage performance, including cost variances, to the Project Board. The project manager must include the actual cost ($520,000) against the planned budget ($500,000) and provide an updated forecast, allowing the board to make an informed decision. This aligns with PRINCE2's management by exception principle, where variances within tolerance are reported in the End Stage Report, not via an exception report.

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Request immediate additional budget from the project board before submitting the report.

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Ignore the overrun because it is within the tolerance set by the project board.

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Raise an exception report to the project board immediately.

Question 5

Which process produces the Project Brief?

Accepted Answer

Starting Up a Project. The Project Brief is produced during the 'Starting Up a Project' process. This process is triggered before the project is formally initiated, and its purpose is to create the Project Brief, which provides a high-level overview of the project's justification, scope, and approach, enabling the Project Board to decide whether to proceed to initiation.

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Directing a Project

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Initiating a Project

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Managing a Stage Boundary

Question 6

Which TWO of the following are components of the Project Initiation Documentation (PID)?

Accepted Answer

Business Case. The Business Case is a core component of the Project Initiation Documentation (PID) because it provides the justification for the project, including costs, benefits, and risks. The Project Plan is also a component of the PID as it defines how and when the project objectives will be achieved, including timescales and resource requirements. Both are mandatory elements that form the foundation of the PID in PRINCE2.

Answer

Project Brief

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Checkpoint Report

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Project Product Description

Question 7

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

Accepted Answer

Raise an Exception Report and await Project Board direction.. C is correct because 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 PRINCE2 management by exception principle: tolerances are delegated limits, and exceeding them requires board-level decision-making, not unilateral action by the Project Manager.

Answer

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

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Increase the project budget using the change budget.

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

Question 8

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. When a tolerance is forecast to be exceeded, the PM must escalate via an Exception Report to the Project Board. This is management by exception.

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Close the project immediately

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Continue with the current plan and report at the next Highlight Report

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Increase the budget and inform the Project Board

Question 9

A project is in the Managing a Stage Boundary process. The Project Manager identifies a deviation that will cause the stage to exceed its tolerance. What should the Project Manager produce?

Accepted Answer

Exception Plan. If a tolerance is forecast to be exceeded during a stage, the PM should have already escalated via an Exception Report in Controlling a Stage. However, if this is identified during Managing a Stage Boundary, the PM should still produce an Exception Plan for the Board's approval.

Answer

End Stage Report

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Exception Report

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Lessons Report

Question 10

Which PRINCE2 principle ensures that the Project Board delegates decision-making to the Project Manager within defined tolerances?

Accepted Answer

Management by Exception. Management by Exception means the PM is empowered within tolerances, and only escalates when tolerances are forecast to be exceeded.

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Learn from Experience

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Continued Business Justification

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Manage by Stages

Question 11

In PRINCE2, what is the difference between a Request for Change (RFC) and an Off-specification?

Accepted Answer

An RFC is a proposal to change a baseline; an Off-specification is a failure to meet a baseline requirement. A Request for Change (RFC) is a formal proposal to modify a baseline (e.g., a product, plan, or scope), while an Off-specification is a documented deviation where a product or component fails to meet its agreed specification or baseline requirement. In PRINCE2, an RFC seeks approval for a change, whereas an Off-specification identifies a non-compliance that must be resolved, often through a change request or concession.

Answer

There is no difference; they are synonyms in PRINCE2

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An Off-specification is always raised by the Project Manager; an RFC is raised by the Project Board

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An RFC only applies to project products; an Off-specification applies to the Business Case

Question 12

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

Accepted Answer

The Project Manager. The Project Manager is responsible for maintaining the Business Case throughout the project because PRINCE2 assigns the day-to-day management of the Business Case to the Project Manager, who must ensure it remains viable and aligned with project progress. The Project Manager updates the Business Case with actual costs, benefits, and risks, and presents it to the Project Board for approval at key decision points. This is defined in PRINCE2's Business Case management process, where the Project Manager owns the document's maintenance, not its approval.

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The Project Assurance

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The Executive

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The Senior Supplier

Question 13

What is the purpose of the Risk Register?

Accepted Answer

To capture and track information about identified risks throughout the project. The Risk Register is a PRINCE2 management product that captures and tracks all identified risks throughout the project lifecycle. It records risk descriptions, probability, impact, proximity, and responses, ensuring risks are actively managed and monitored. This aligns with the PRINCE2 principle of continued business justification by maintaining visibility of threats and opportunities.

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To approve risk budgets

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To report progress to stakeholders

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To record all decisions made by the Project Board

Question 14

In the Managing Product Delivery process, who produces Checkpoint Reports?

Accepted Answer

Team Manager. In PRINCE2, the Team Manager is responsible for producing Checkpoint Reports during the Managing Product Delivery process. These reports provide the Project Manager with progress updates on work packages at a frequency defined in the Work Package.

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Project Manager

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Project Assurance

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Project Board

Question 15

Which TWO of the following are opportunity responses in PRINCE2 risk management?

Accepted Answer

Exploit. Exploit and Enhance are opportunity responses. Avoid and Transfer are threat responses. Accept can be used for both.

Answer

Accept

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Transfer

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Avoid