PRINCE2F PRINCE2 Practices Practice Test 16 — 15 Questions

Question 1

A team manager reports that a work package is complete. What should the Project Manager do to verify this?

Accepted Answer

Review the Team Plan to confirm all products are delivered and accepted. Reviewing the Team Plan is the correct action because the Team Plan documents all products to be delivered and their acceptance criteria. The Project Manager verifies completion by checking the Team Plan against actual achievements, ensuring all products are delivered and accepted. Option B is incorrect because the Issue Register is for recording issues, not work package completion. Option C is incorrect because the team manager reports to the Project Manager, not directly to the Project Board. Option D is incorrect because checking the product against its Product Description is a quality inspection step, not the primary verification of work package completion.

Answer

Log the completion in the Issue Register

Answer

Instruct the team to report directly to the Project Board

Answer

Check the product against its Product Description

Question 2

In PRINCE2, who is responsible for defining the change budget?

Accepted Answer

The Project Board. The Project Board approves the change budget as part of the project's risk and change management approach.

Answer

The Senior User

Answer

The Change Authority

Answer

The Project Manager

Question 3

A risk has been identified that could cause a delay to the project. The project team decides to purchase insurance to cover the financial impact. Which risk response type is this?

Accepted Answer

Transfer. Transferring the financial impact to a third party (insurance) is a 'transfer' response. 'Reduce' would involve actions to lower probability or impact. 'Accept' would be to take the risk without action.

Answer

Avoid

Answer

Accept

Answer

Reduce

Question 4

The Managing a Stage Boundary process includes which of the following activities?

Accepted Answer

Producing an End Stage Report and a Stage Plan for the next stage. Managing a Stage Boundary includes producing an End Stage Report and preparing a Stage Plan for the next stage.

Answer

Authorising a Work Package

Answer

Producing an Exception Plan

Answer

Updating the Business Case

Question 5

In PRINCE2, what is the purpose of the 'Managing Product Delivery' process?

Accepted Answer

To accept, execute, and deliver work packages. The 'Managing Product Delivery' process in PRINCE2 is designed to control the link between the Project Manager and the Team Manager(s) by accepting, executing, and delivering work packages. It ensures that the work assigned to a team is properly authorized, carried out according to the agreed criteria, and that the completed products are handed back to the Project Manager for approval.

Answer

To make key decisions and provide overall direction

Answer

To control the work of the stage on a day-to-day basis

Answer

To plan the next stage and review the Business Case

Question 6

What is the purpose of the Quality Review Technique?

Accepted Answer

To assess whether a product is complete and fit for purpose. The Quality Review Technique is a team-based review to assess whether a product meets its quality criteria.

Answer

To approve the project's quality management approach

Answer

To assign quality responsibilities to team members

Answer

To identify all quality control activities in the project

Question 7

The Project Board has set a cost tolerance of +/- 10% for a stage. The Project Manager forecasts that the stage will be completed 15% under budget. What should the Project Manager do?

Accepted Answer

Raise an Exception Report to the Project Board. The cost tolerance for the stage is +/-10%, meaning the stage must be completed within 10% over or under the planned budget. A forecast of 15% under budget exceeds the -10% tolerance, constituting an exception. According to PRINCE2, when a forecast indicates that stage tolerance will be exceeded, the Project Manager must raise an Exception Report to the Project Board. Option A is incorrect because Highlight Reports are used for regular reporting within tolerance, not for exceptions. Option B is incorrect because the Project Manager cannot reallocate surplus without authorization. Option C is incorrect because being outside tolerance requires escalation, not inaction.

Answer

Report the underrun in the next Highlight Report

Answer

Reallocate the surplus to other activities without informing the Project Board

Answer

Continue as planned since being under budget is beneficial

Question 8

Which role is responsible for implementing the risk responses?

Accepted Answer

The risk actionee. In PRINCE2, the risk actionee is the person responsible for implementing the risk responses that have been agreed upon. This role is assigned by the risk owner to carry out specific actions to mitigate, transfer, avoid, or accept the risk. The risk actionee reports back to the risk owner on the progress and effectiveness of the response.

Answer

The change authority

Answer

The risk owner

Answer

The Project Manager

Question 9

What is the difference between a Request for Change and an Off-specification?

Accepted Answer

A Request for Change proposes a change to an agreed product; an Off-specification is a product that does not meet its specification. A Request for Change (RFC) is a formal proposal to modify a product that has already been agreed and baselined. An Off-specification (Off-spec) identifies a product that does not meet its specification or is missing. Option A is incorrect because it reverses the definitions: RFC is not limited to defects, and Off-spec is not limited to enhancements. Option B is false because they are distinct issue types. Option C is incorrect because both RFC and Off-spec are types of issues, not risk versus issue. Option D correctly captures the difference: an RFC proposes a change to an agreed product, while an Off-spec is a product that fails to meet its specification.

Answer

A Request for Change is for defects; Off-specification is for enhancements

Answer

They are the same thing

Answer

A Request for Change is a type of risk; Off-specification is a type of issue

Question 10

Which THREE of the following are components of the PRINCE2 quality management approach?

Accepted Answer

Quality control methods (e.g., quality review technique). The Quality Management Approach includes standards, quality control methods, and quality assurance. The Quality Register is a separate document, not part of the approach. The Project Plan is also separate.

Answer

Project Plan

Answer

Quality Register

Question 11

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 on a day-to-day basis, while the Executive (SRO) owns it and is ultimately accountable for its justification.

Answer

Project Assurance

Answer

Executive

Answer

Senior User

Question 12

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 before proceeding. 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 because tolerances are delegated authority limits; exceeding them requires the Project Board's decision to either approve a revised plan or take corrective action. Option D correctly follows the PRINCE2 exception management process, ensuring governance and control are maintained.

Answer

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

Answer

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

Answer

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

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 PRINCE2 assigns day-to-day management of the Business Case to the Project Manager, who must ensure it remains viable and aligned with the project's 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 approach, where the Project Manager acts as the custodian of the document.

Answer

Senior User

Answer

Project Board

Answer

Senior Supplier

Question 14

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

Accepted Answer

Raise an Exception Report to the Project Board. In PRINCE2, when a project forecasts exceeding its stage-level cost tolerance, the Project Manager must first 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 delegated tolerance; the Project Board must decide on corrective action, such as approving a revised plan or closing the project. Option C is correct as it aligns with the PRINCE2 principle of management by exception.

Answer

Increase the stage budget and continue

Answer

Close the project as the Business Case is not viable

Answer

Wait until the next Highlight Report

Question 15

What is the key difference between a Request for Change and an Off-specification?

Accepted Answer

A Request for Change is for any change to an agreed baseline; an Off-specification is when a product does not meet its specification. In PRINCE2, a Request for Change (RFC) is a proposal for a change to any product that has been baselined, while an Off-specification (Off-spec) is a notification that a product does not meet its agreed specification. The key distinction lies in the nature of the issue: an RFC seeks to alter an existing baseline, whereas an Off-spec reports a deviation from the specification that must be resolved, often through a concession or a corrective action.

Answer

A Request for Change proposes a change to a product that has not yet been created; an Off-specification relates to a product that already exists and is defective

Answer

A Request for Change is always raised by the Project Manager; an Off-specification is raised by the Team Manager

Answer

A Request for Change must be approved by the Project Board; an Off-specification can be approved by the Change Authority