PRINCE2F PRINCE2 Practices Practice Test 24 — 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 and await directions. In PRINCE2, stage cost tolerance is a delegated limit from the Project Board to the Project Manager. When a forecast shows the stage will exceed that tolerance, the situation is by definition an 'exception' and must be escalated via an Exception Report so the Project Board can decide how to proceed (e.g., approve a revised plan, change scope, or stop the project). The Project Manager has no authority to breach the tolerance unilaterally.

Answer

Increase the stage budget by using the project's change budget

Answer

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

Answer

Close the project as the Business Case is no longer viable

Question 2

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

Accepted Answer

A Request for Change seeks to modify a baselined product; an Off-specification identifies a failure to meet a specification. In PRINCE2, a Request for Change (RFC) is a formal proposal to modify a baselined product, while an Off-specification (Off-spec) is a notification that a product has failed to meet its agreed specification. Option C correctly captures this distinction: RFCs seek to change the baseline, whereas Off-specs identify a deviation from the specification. This is a core concept in PRINCE2's change control approach, ensuring that baselines are protected and issues are properly categorized.

Answer

A Request for Change is raised by the Project Manager; an Off-specification is raised by the Senior User

Answer

There is no difference; they are alternative terms for the same thing

Answer

A Request for Change always requires a change budget; an Off-specification does not

Question 3

Which TWO of the following are components of the Business Case?

Accepted Answer

Expected benefits. The Business Case is the justification for an investment in a project or programme, and it must articulate the value the work will deliver, so A (Expected benefits) is correct because it captures the quantified and unquantified gains, outcomes, and value that justify undertaking the initiative. C (Major risks) is also correct because the Business Case must document the significant risks, along with their potential impact and mitigation, that could affect the viability of the expected benefits and costs. B (Configuration item records) is not part of the Business Case; configuration item records are configuration management data used to identify and control components and their versions. D (Team structure) is not a Business Case component; the organisation and team structure is addressed in management or resource plans. E (Product Breakdown Structure) is not part of the Business Case; it is a hierarchical decomposition of the products or deliverables used in planning, not a business justification element.

Answer

Configuration item records

Answer

Team structure

Answer

Product Breakdown Structure

Question 4

Which TWO of the following are components of the Business Case?

Accepted Answer

Investment appraisal. Investment appraisal (A) is a core component of the Business Case because it evaluates the viability of the proposed change by comparing costs against returns using techniques such as ROI, NPV, payback period, and cost-benefit analysis. Expected benefits (E) are also essential, as the Business Case must articulate the measurable business outcomes and value the initiative will deliver, justifying why the investment should be approved. The other options do not belong: Configuration Item Records (B) are part of the Configuration Management System, Product Description (C) belongs to the plans and product-based planning documentation, and the Risk Register (D) is a separate risk management artifact, even though risks may be summarized within the Business Case.

Answer

Configuration Item Records

Answer

Product Description

Answer

Risk Register

Question 5

Which THREE of the following are roles in the project management team?

Accepted Answer

Executive. In PRINCE2, the project management team is defined by the three project interests represented on the Project Board: Business, User, and Supplier. Option A (Executive) is correct because the Executive owns the Business interest, chairs the Project Board, and is ultimately accountable for the project's success. Option C (Senior User) is correct because the Senior User represents the User interest on the Project Board and is responsible for specifying and monitoring the delivery of benefits. Option E (Project Manager) is correct because the Project Manager is the single individual appointed to manage the project on a day-to-day basis and reports to the Project Board. Options B (Risk Actionee) and D (Change Authority) are not project management team roles; the Risk Actionee is a person assigned to carry out a risk response action, and the Change Authority is a role that may be delegated responsibility for approving changes, but neither is one of the defined project management team roles.

Answer

Risk Actionee

Answer

Change Authority

Question 6

Which TWO of the following are opportunity responses in PRINCE2?

Accepted Answer

Share. In PRINCE2, the risk management approach defines specific responses for both threats and opportunities, and for opportunities the recognized responses are 'exploit', 'enhance', 'share', and 'reject'. Option A, 'Share', is correct because sharing an opportunity involves allocating ownership of the opportunity to a third party (e.g., a supplier or partner) who is best able to realize the benefit, often in exchange for a share of the gain. Option D, 'Enhance', is correct because enhancing an opportunity means taking action to increase the probability and/or impact of the opportunity occurring, thereby maximizing the potential benefit. The unmarked options do not belong because 'Transfer', 'Reduce', and 'Avoid' are threat responses in PRINCE2 (transferring, reducing, and avoiding risks), not opportunity responses.

Answer

Transfer

Answer

Reduce

Answer

Avoid

Question 7

Which TWO of the following statements about the Quality Review technique are correct?

Accepted Answer

It is used to assess whether a product meets its quality criteria. Option A is correct because the Quality Review technique in PRINCE2 is specifically designed to assess whether a product conforms to its quality criteria as defined in the product description, making it a product-focused quality control activity. Option D is correct because a Quality Review follows a defined structure with distinct roles: the Chair (who organizes and leads the review), the Presenter (who represents the producer and introduces the product), and the Reviewers (who evaluate the product against the quality criteria). Option B is incorrect because Quality Reviews can be applied to any product, whether delivered to internal or external customers, not exclusively external ones. Option C is incorrect because the review is conducted by a team assembled for that purpose, not always by Project Assurance, which has a broader independent oversight role. Option E is incorrect because auditing the project's quality management system is the purpose of a quality audit, not a Quality Review, which examines a specific product against its criteria.

Answer

It is only used for products delivered to external customers

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It is always performed by the Project Assurance role

Answer

It is an audit of the project's quality management system

Question 8

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, ensuring it remains viable and updated with actual progress and changes. While the Executive is accountable for the Business Case, the Project Manager is the one who maintains and updates it. This includes revising forecasts, benefits, costs, and risks as the project progresses.

Answer

Project Support

Answer

Senior User

Answer

Executive

Question 9

Which THREE of the following are purposes of the Plans practice?

Accepted Answer

To define the means of delivering the project's products. Option A is correct because a core purpose of the Plans practice is to define the means of delivering the project's products, i.e., specifying the approach, resources, and activities needed to produce the required outputs. Option B is correct because plans establish an approved baseline (scope, schedule, cost, quality) against which actual performance is measured, enabling control and informed decision-making throughout the project. Option E is correct because plans serve as a communication vehicle that conveys how the work will be performed, who is responsible, and when activities will occur, aligning stakeholders and the team. Option C is not a purpose of the Plans practice itself; risk identification and assessment belong to the Risk practice, even though plans may reference risk responses. Option D is not a purpose of the Plans practice; justifying the investment is addressed by the Business Case practice, which establishes the value and rationale for the project.

Answer

To identify and assess risks to the project

Answer

To justify the investment in the project

Question 10

Which document describes the quality expectations and acceptance criteria for a project's products?

Accepted Answer

Quality Management Approach. The Quality Management Approach defines how quality will be managed, including quality criteria and acceptance methods.

Answer

Product Description

Answer

Project Product Description

Answer

Quality Register

Question 11

What is the purpose of the Product Status Account?

Accepted Answer

To summarize the status of products in the project. The Product Status Account is a PRINCE2 configuration management record that provides a snapshot of the current status of all products (or a subset) within the project, showing information such as version, status, and stage. It is used by the Project Manager to report on product status, particularly for checkpoint and highlight reporting, and to support the configuration management strategy. It is not a tool for approving changes or recording quality review results, which are handled by other PRINCE2 records.

Answer

To update the configuration management system

Answer

To approve changes to baselined products

Answer

To record the quality review results of a product

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. In PRINCE2, if a project is forecast to exceed its cost tolerance, the Project Manager must raise an Exception Report to the Project Board. The Project Board then decides how to proceed, as tolerances are delegated limits of authority.

Answer

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

Answer

Increase the project budget to absorb the additional cost

Answer

Close the project immediately

Question 13

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

Accepted Answer

An RFC concerns a desired change to an approved specification; an Off-specification is a product that does not meet its specification. A Request for Change (RFC) is a formal proposal to modify an approved baseline product or process, while an Off-specification is a product that has been identified as not meeting its agreed specification. The key distinction is that an RFC seeks to change the specification itself, whereas an Off-specification indicates a deviation from an already-approved specification that must be resolved.

Answer

There is no difference; they are the same thing

Answer

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

Answer

An RFC requires a change budget; an Off-specification does not

Question 14

Which role is accountable for the business justification of a PRINCE2 project?

Accepted Answer

Executive. The Executive is the single individual accountable for the project's business justification, owning the Business Case throughout the project lifecycle. In PRINCE2, the Executive represents the business interest on the Project Board and is personally accountable for ensuring the project remains viable and delivers value for money. This accountability cannot be delegated to the Project Manager, who only prepares and updates the Business Case on the Executive's behalf.

Answer

Senior User

Answer

Project Manager

Answer

Project Board

Question 15

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

Accepted Answer

To plan the next stage and review the Business Case. The Managing a Stage Boundary process is designed to provide the Project Board with sufficient information to review the current stage's performance, approve the next stage plan, and reassess the continued viability of the project by reviewing the Business Case. This process ensures that the project remains aligned with its business justification before committing resources to the next stage.

Answer

To close the project

Answer

To initiate the project

Answer

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