PRINCE2F Overview of PRINCE2 and the project environment Practice Test 5 — 15 Questions

Question 1

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. When a tolerance is forecast to be exceeded, the Project Manager must escalate to the Project Board via an Exception Report.

Answer

Continue and report in the next Highlight Report

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Close the project

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Increase the stage budget and continue

Question 2

What is the purpose of the Managing a Stage Boundary process?

Accepted Answer

To enable the Project Board to review the current stage and authorize the next. The purpose is to provide the Project Board with information to review the current stage and authorize the next stage.

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To close the project

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To manage the day-to-day activities of a stage

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To initiate the project

Question 3

What is the difference between a Request for Change (RFC) and an Off-specification (Off-spec)?

Accepted Answer

An RFC is a proposal for a change; an Off-spec is a deviation from specification. In PRINCE2, a Request for Change (RFC) is a formal proposal to modify a product, baseline, or plan, while an Off-specification (Off-spec) is a formal notification that a product or component does not meet its agreed specification. Option D correctly captures this distinction: an RFC proposes a change, whereas an Off-spec identifies a deviation from the specification that already exists. This is a fundamental difference in the PRINCE2 change control approach, where RFCs are about future modifications and Off-specs are about current non-conformance.

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An RFC is always approved; an Off-spec is always rejected

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An RFC relates to cost; an Off-spec relates to quality

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An RFC is initiated by the Project Manager; an Off-spec is initiated by the Team Manager

Question 4

Which of the following is a characteristic of a project?

Accepted Answer

Unique output. A project is defined as a temporary endeavor undertaken to create a unique product, service, or result. The 'unique output' is a core characteristic because every project delivers something that has not been done before in exactly the same way, distinguishing it from routine operations. PRINCE2 emphasizes this uniqueness as a key driver for tailoring management processes to the specific project context.

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Ongoing operations

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Permanent team structure

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Repetitive processes

Question 5

In PRINCE2, what is the difference between Project Assurance and Project Support?

Accepted Answer

Project Assurance provides independent oversight; Project Support provides administrative help. PRINCE2 defines Project Assurance as an independent oversight function that monitors compliance with the project's management stages, while Project Support provides administrative and clerical help to the Project Manager and team. This distinction is fundamental to PRINCE2's separation of assurance from management and support roles.

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Project Assurance focuses on quality; Project Support focuses on planning

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Project Assurance is done by the Project Manager; Project Support is done by the team

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Project Assurance is optional; Project Support is mandatory

Question 6

Which principle ensures that a project remains viable?

Accepted Answer

Continued Business Justification. The Continued Business Justification principle ensures that a project remains viable by requiring ongoing validation of the business case throughout the project lifecycle. If the justification ceases to be valid (e.g., costs exceed benefits or strategic alignment is lost), the project should be stopped. This principle is the foundation for PRINCE2's focus on value for money and risk management.

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Manage by Stages

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Learn from Experience

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Tailor to Suit the Project

Question 7

What does PRINCE2 NOT cover?

Accepted Answer

Human resource management. PRINCE2 is a process-based project management methodology that focuses on business justification, defined roles, and product-based planning. It explicitly excludes detailed human resource management techniques such as team motivation, conflict resolution, and performance appraisals, which are typically covered by general management disciplines. Therefore, human resource management is not covered by PRINCE2.

Answer

Risk management

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Change control

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Quality management

Question 8

A team member reports that a product does not meet its specification. How should the Project Manager record this?

Accepted Answer

As an Off-specification. In PRINCE2, an Off-specification is the correct record when a product fails to meet its agreed specification or quality criteria. The Project Manager logs this in the Issue Register as a type of issue, not a risk, change, or lesson, because the product already exists and does not conform to its defined requirements.

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As a Risk

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As a Request for Change

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As a Lesson

Question 9

Who chairs the Project Board?

Accepted Answer

Executive. The Executive is the chair of the Project Board in PRINCE2 because they have ultimate accountability for the project's business justification and overall success. The Executive owns the business case and is the key decision-maker, presiding over board meetings to ensure the project remains viable and aligned with organizational objectives.

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Project Manager

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Senior Supplier

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Senior User

Question 10

Which TWO of the following are PRINCE2 principles?

Accepted Answer

Continued Business Justification. The seven principles include Manage by Stages and Continued Business Justification. 'Use of Agile' is not a principle.

Answer

Use of Agile

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Waterfall Development

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Daily Stand-ups

Question 11

Which THREE of the following are PRINCE2 practices (themes)?

Accepted Answer

Risk. Business Case, Risk, and Quality are themes. PRINCE2 has seven themes.

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Waterfall

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Sprint Planning

Question 12

Which TWO processes involve the Project Board making key decisions?

Accepted Answer

Directing a Project. The Directing a Project process is the only process that is exclusively for the Project Board, providing overall direction and control. It includes key decision points such as authorizing project initiation, ad hoc direction, and authorizing project closure. The Managing a Stage Boundary process also involves the Project Board because it requires the board to approve the End Stage Report and the next Stage Plan, thereby making a key decision to proceed.

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Controlling a Stage

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Starting Up a Project

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Managing Product Delivery

Question 13

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

Accepted Answer

Project Manager. Project Manager. According to PRINCE2, the Project Manager is responsible for the day-to-day maintenance of the Business Case, including updating it as necessary and ensuring it remains viable throughout the project. The Executive is ultimately accountable for the Business Case, but the Project Manager performs the actual maintenance activities.

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Project Assurance

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Senior User

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Executive

Question 14

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

Accepted Answer

Project Initiation Documentation. The Initiating a Project process in PRINCE2 is where the project's foundations are established, and its key output is the Project Initiation Documentation (PID). The PID consolidates all essential information—including the Business Case, project plan, risk register, and controls—into a single, approved document that defines what the project will deliver and how it will be managed. This makes option C correct because the PID is the definitive output that triggers the next process, Managing a Stage Boundary.

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Project Brief

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Stage Plan

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Business Case

Question 15

A project is forecast to exceed its cost tolerance. According to PRINCE2, what should the Project Manager do?

Accepted Answer

Raise an Exception Report to the Project Board and await their direction before proceeding. According to PRINCE2, when a tolerance (cost, time, scope, or risk) is forecast to be exceeded, the Project Manager must escalate the issue to the Project Board via an Exception Report. The Project Board then decides on corrective action. Option A correctly reflects this escalation procedure. Options B, C, and D are incorrect because the Project Manager cannot unilaterally increase the budget, should not continue without reporting the forecast deviation, and should not close the project immediately without board assessment.

Answer

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