PRINCE2F PRINCE2 Practices Practice Test 41 — 15 Questions

Question 1

During the Controlling a Stage process, the Project Manager identifies that the stage's cost tolerance is forecast to be exceeded. 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 stage's cost tolerance is forecast to be exceeded, 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 Stage Plan or take other corrective action. Continuing without escalation or making unauthorized adjustments violates the management by exception principle.

Answer

Increase the stage budget using the change budget and continue with the current Stage Plan

Answer

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

Answer

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

Question 2

Which TWO of the following documents are produced by the Project Manager and reviewed by the Project Board?

Accepted Answer

Highlight Report. The Highlight Report and End Stage Report are both produced by the Project Manager and are formally reviewed by the Project Board. The Highlight Report provides regular progress updates, while the End Stage Report gives the Board information needed to authorize the next stage. The Exception Report (C) is also produced by the PM and reviewed by the Board, but it is only produced when tolerances are forecast to be exceeded, so it is not a routine review document. The End Project Report (E) is reviewed by the Board at the end of the project, but the question asks for documents reviewed during the project boundaries, making B and D the correct pair.

Answer

Checkpoint Report

Answer

Exception Report

Answer

End Project Report

Question 3

Which THREE of the following are steps in the PRINCE2 risk management procedure?

Accepted Answer

Plan. The risk management procedure steps are: Identify, Assess, Plan, Implement, Communicate.

Answer

Monitor

Answer

Analyze

Question 4

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

Accepted Answer

The Project Manager. The Executive (Senior Responsible Owner) is the owner of the Business Case. The Project Manager maintains (updates) the Business Case on behalf of the Executive.

Answer

The Senior User

Answer

The Project Assurance

Answer

The Senior Supplier

Question 5

Which TWO are types of issue in PRINCE2?

Accepted Answer

Request for Change. In PRINCE2, an issue is a relevant event that has occurred and requires management attention. The two defined types of issue are Request for Change (a proposal for a change to the product's specification or baseline) and Off-specification (something that should be provided but is not, or is provided incorrectly). These are formally documented and managed through the issue and change control procedure.

Answer

Opportunity

Answer

Risk

Answer

Constraint

Question 6

Which THREE of the following are components of a Product Description?

Accepted Answer

Quality criteria. A Product Description includes: identifier, title, purpose, composition, derivation, format, quality criteria, quality tolerance, quality method, quality skills required.

Answer

Acceptance criteria

Answer

Project Plan

Question 7

A project manager discovers that a product expected to be completed in the current stage does not meet its product description quality criteria. The project manager has already used the stage's change budget to address a similar issue. What should the project manager do?

Accepted Answer

Request additional budget from the Project Board via an Exception Report. The change budget is exhausted, so the project manager cannot authorize rework within their delegated authority. An Exception Report is the correct mechanism to escalate to the Project Board for additional budget or guidance. Option A is wrong because product descriptions should not be changed to match a non-conforming product; quality criteria must be met. Option C is wrong because accepting a non-conforming product without addressing the issue risks overall project quality. Option D is wrong because the risk budget is for managing risks, not for quality rework.

Answer

Update the product description to match the delivered product

Answer

Accept the product as delivered and proceed to the next stage

Answer

Approve the rework using the remaining risk budget

Question 8

Which practice defines the project management team structure and roles?

Accepted Answer

Organising. The Organising practice defines the project management team structure, roles, and responsibilities.

Answer

Business Case

Answer

Plans

Answer

Progress

Question 9

Which THREE of the following are characteristics of PRINCE2's product-based planning approach?

Accepted Answer

It uses a Product Breakdown Structure. The Product Breakdown Structure (PBS) is a key characteristic of PRINCE2's product-based planning approach. It provides a hierarchical decomposition of all products to be created, ensuring that the project's outputs are clearly defined before activities are planned. This aligns with PRINCE2's principle of focusing on products rather than activities.

Answer

It prioritises products based on their quality criteria

Answer

It starts by identifying activities and then determines products

Question 10

What is the definition of quality in PRINCE2?

Accepted Answer

Fit for purpose. PRINCE2 defines quality as 'fit for purpose,' meaning the product meets its stated requirements and user expectations.

Answer

Conformance to specification

Answer

Zero defects

Answer

Customer satisfaction

Question 11

Which TWO statements about the Change Authority are true?

Accepted Answer

It has the authority to approve changes within a defined limit. The Change Authority is a role defined in PRINCE2 that is granted the authority to approve changes within a defined limit, such as a cost or time threshold. This limit is typically set by the Project Board in the Project Initiation Documentation, and the Change Authority can be an individual (e.g., a senior user) or a group (e.g., a change board). Option A is incorrect because the Change Authority is defined in the Change Control Approach, not the Configuration Management Approach. Option D is incorrect because the Change Authority is not always the Project Manager; it is a separate role with delegated authority. Option E is incorrect because maintaining Configuration Item Records is the responsibility of the Configuration Librarian, not the Change Authority.

Answer

It is defined in the Configuration Management Approach

Answer

It is always the Project Manager

Answer

It is responsible for maintaining the Configuration Item Records

Question 12

An issue is raised that a product delivered by a supplier does not include a feature that was agreed in the product description. The Project Manager determines that the product is still usable without the feature. What type of issue is this?

Accepted Answer

Off-specification. An Off-specification is something that should be provided but is not (or is provided but does not meet specifications). A Request for Change is a proposed change. A Problem/Concern is a general issue. Here, the feature is missing, so it's an Off-specification.

Answer

Request for Change

Answer

Problem/Concern

Answer

Risk

Question 13

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

Accepted Answer

Project Description. The PID includes the Business Case, Project Plan, Project Description, roles and responsibilities, etc. The Risk Register is a separate document, and the Checkpoint Report is a management product.

Answer

Checkpoint Report

Answer

Risk Register

Question 14

Which document is used to capture and track all identified risks throughout the project?

Accepted Answer

Risk Register. The Risk Register is the document used to record and track risks.

Answer

Quality Register

Answer

Configuration Item Record

Answer

Issue Register

Question 15

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. According to PRINCE2's management by exception principle, if a stage tolerance is forecast to be exceeded, the Project Manager must escalate to the Project Board via an Exception Report. The PM cannot exceed tolerance without authorization.

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