PRINCE2F Practice Test 8 — 10 Questions

Question 1

A project is forecast to exceed its 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. In PRINCE2, when a stage is forecast to exceed its cost tolerance, the Project Manager must escalate the issue to the Project Board by raising an Exception Report. This is because the Project Manager does not have authority to exceed the agreed tolerance; the Project Board must decide whether to approve a revised plan or take other corrective action. Option D correctly follows the PRINCE2 exception management process.

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

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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

Question 2

Which role is responsible for providing assurance that the project is being conducted properly?

Accepted Answer

Project Assurance. Project Assurance is responsible for independent oversight of the project, separate from management and delivery.

Answer

Project Manager

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Project Support

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Senior User

Question 3

In the Risk practice, who is responsible for implementing a risk response?

Accepted Answer

Risk actionee. In PRINCE2, the risk actionee is the person responsible for implementing the risk response actions as defined in the risk response plan. The risk owner owns the risk and oversees the response, but the actual implementation is delegated to the risk actionee. This separation ensures clear accountability for execution versus ownership.

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Project Manager

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Project Board

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Risk owner

Question 4

Which process ensures that the project's products are delivered according to the agreed quality criteria?

Accepted Answer

Managing Product Delivery. Managing Product Delivery is the PRINCE2 process that focuses on the work required to create the project's products and ensures they are delivered according to the agreed quality criteria. It is the process where the team manager accepts work packages, executes the work, and delivers completed products that meet the defined quality standards.

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Initiating a Project

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Controlling a Stage

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Directing a Project

Question 5

Which PRINCE2 principle is being applied when the Project Manager escalates an issue that is outside the stage tolerance?

Accepted Answer

Manage by exception. The principle of 'Manage by exception' is applied when the Project Manager escalates an issue that exceeds the stage tolerance. This principle establishes that each management level (e.g., Project Manager, Project Board) has defined tolerances (e.g., time, cost, quality) for their delegated authority; if a forecast or actual deviation goes beyond those tolerances, the issue must be escalated to the next management level for a decision. By escalating the out-of-tolerance issue, the Project Manager is following the exception-based control mechanism that is core to PRINCE2.

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Manage by stages

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Tailor to suit the project environment

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Continued business justification

Question 6

Which process covers the day-to-day management of a stage by the Project Manager?

Accepted Answer

Controlling a Stage. The 'Controlling a Stage' process is the day-to-day management of a stage by the Project Manager. It involves authorizing work packages, monitoring progress, dealing with issues, and reporting to the Project Board. This process ensures the stage stays on track and within tolerances.

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Managing a Stage Boundary

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Directing a Project

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Managing Product Delivery

Question 7

You are the project manager for a software development project. The business case shows a net present value (NPV) of $200,000 with a payback period of 18 months. During the initiating stage, the senior supplier informs you that the cost of a key component has increased by 20%, which will reduce the NPV to $50,000 and extend the payback period to 24 months. The project board is not scheduled to meet for another month. What should you do?

Accepted Answer

Request an extraordinary meeting of the project board to discuss the revised business case. PRINCE2 requires that any change to the business case, especially one that significantly reduces NPV and extends payback period, must be escalated to the project board for a decision. As project manager, you cannot unilaterally update the business case or change scope; you must request an extraordinary meeting to present the revised business case and seek approval to continue. This aligns with the 'continued business justification' principle and the 'manage by stages' theme.

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Update the business case with the new figures and continue with the project

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Reduce project scope to bring costs back in line with the original business case

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Wait for the next scheduled board meeting to present the changes

Question 8

During a project, a team manager reports that a work package is taking longer than expected. The project manager needs to assess the impact on the project schedule. Which practice should be used to evaluate the effect and determine whether to escalate?

Accepted Answer

Progress. The Progress practice is used to monitor and compare actual achievements against planned performance, and to assess the impact of deviations. When a work package takes longer than expected, the project manager uses Progress to evaluate the effect on the schedule and decide whether to escalate to the project board. This aligns with PRINCE2's principle of managing by stages and using tolerances to control deviations.

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Risk

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Plans

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Organizing

Question 9

Which process is used by the Project Board to oversee the entire project?

Accepted Answer

Directing a Project. The 'Directing a Project' process is the correct answer because it is the PRINCE2 process that covers the Project Board's responsibilities for overseeing the entire project from start to finish. It provides the strategic direction, authorizes key decisions (such as stage boundaries and project closure), and ensures the project remains viable and aligned with business objectives. This process runs from the initial authorization to the final project closure, making it the overarching governance mechanism.

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Controlling a Stage

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Managing Product Delivery

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Starting Up a Project

Question 10

A project is experiencing many changes due to evolving requirements. Which document should the Project Manager use to track all requests for change?

Accepted Answer

Issue Register. The Issue Register is the PRINCE2 document specifically designed to capture, track, and manage all requests for change, including off-specifications, problems, and concerns. Since the project is experiencing many changes due to evolving requirements, the Project Manager must log each change request in the Issue Register to ensure proper impact analysis, decision-making, and audit trail. This aligns with the PRINCE2 practice of managing issues and changes through a controlled process.

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Risk Register

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Configuration Item Record

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Quality Register