PRINCE2F PRINCE2 Practices Practice Test 7 — 15 Questions

Question 1

A project manager is creating the project product description. Which practice provides the guidance for defining the project's outputs and acceptance criteria?

Accepted Answer

Quality. The Quality practice in PRINCE2 provides the guidance for defining the project's outputs and acceptance criteria. It ensures that the project product description includes the quality criteria, quality methods, and acceptance criteria that the product must meet to be accepted by the customer. This practice directly addresses how to specify and verify the project's deliverables.

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Change

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Risk

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Plans

Question 2

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 3

Which TWO statements about the PRINCE2 Quality practice are correct?

Accepted Answer

The quality register is used to record planned and completed quality activities.. The quality register is the PRINCE2 management product used to record all planned and completed quality activities, including quality inspections and test results. It provides a log of quality events throughout the project lifecycle, enabling traceability and auditability of quality efforts.

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Quality control is the responsibility of the project board.

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Quality assurance is performed by the project manager.

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The project product description is a specialist product.

Question 4

Which THREE statements about the PRINCE2 Risk practice are correct?

Accepted Answer

The risk register is a management product that records identified risks.. The risk register is a PRINCE2 management product that formally records all identified risks, their status, and related information throughout the project. It is created during the Initiating a Project process and maintained as risks are identified, assessed, and responded to.

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Risk owners are responsible for the risk budget.

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Risks are assessed only during the initiating a project process.

Question 5

A project manager is defining the project's products in the Product Breakdown Structure. A key stakeholder disagrees with the inclusion of a certain product, claiming it is not needed. The project manager believes the product is essential to meet the user requirements. What is the best course of action according to PRINCE2 practices?

Accepted Answer

Update the Business Case to reflect the costs and benefits of including the product, and present it to the Project Board for a decision.. PRINCE2 requires that any change to the project's scope, including the addition or removal of a product, must be formally assessed against the Business Case. The project manager should update the Business Case with the costs and benefits of including the disputed product and then present it to the Project Board, which holds the authority to approve or reject changes to the project's products. This aligns with the 'continued business justification' principle and the 'change control' practice.

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Escalate directly to senior management without discussion with the stakeholder.

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Proceed with including the product as the project manager has authority over product definitions.

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Remove the product to satisfy the stakeholder, as stakeholder satisfaction is key.

Question 6

A project is in the Initiating a Project process. The project manager is creating the Risk Management Approach. Which of the following should be included in this approach?

Accepted Answer

The risk categories to be used for classifying risks.. In the Initiating a Project process, the Risk Management Approach is a strategy document that defines how risk management will be performed throughout the project. It must include the risk categories (e.g., technical, external, organizational) used to classify risks, as these provide a consistent framework for identifying and assessing risks. The risk register, risk appetite, and risk budget are not part of the approach itself; they are outputs of later processes or separate management products.

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The risk register with identified risks.

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The risk appetite of the organization.

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The risk budget for the project.

Question 7

A project manager is preparing the Business Case for a new project. The expected benefits are $500,000, and the expected costs are $400,000. However, there is a high risk that the benefits may be only $300,000 due to market uncertainty. According to PRINCE2 practices, how should the project manager reflect this in the Business Case?

Accepted Answer

Include a cost-benefit analysis showing a range of benefits ($300,000-$500,000) and a risk assessment explaining the market uncertainty.. PRINCE2 requires the Business Case to be a living document that reflects realistic projections, including uncertainties. By showing a range of benefits ($300,000–$500,000) and a corresponding risk assessment, the project manager provides a balanced view that supports informed decision-making, aligning with the 'continued business justification' principle.

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Use the lower benefit estimate of $300,000 to be conservative.

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Use the expected benefits of $500,000 as the primary figure, with a note that benefits may vary.

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Omit the risk from the Business Case to avoid discouraging stakeholders.

Question 8

Which TWO statements about the PRINCE2 practice 'Organizing' are correct?

Accepted Answer

The project management team structure defines the roles and responsibilities within the project.. The PRINCE2 'Organizing' practice defines the project management team structure, which establishes clear roles and responsibilities for all team members. This structure ensures accountability and effective communication throughout the project lifecycle.

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The project manager reports to the project board through the senior user.

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The project board consists of four roles: executive, senior user, senior supplier, and project manager.

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Project assurance is a role within project support.

Question 9

During a quality review, it is discovered that the acceptance criterion 'The system shall be compatible with Windows 10 and macOS' has been classified as 'Should' (i.e., a desirable but not essential criterion). Which action should be taken?

Accepted Answer

Seek confirmation from the customer that the classification is acceptable.. In PRINCE2, the classification of acceptance criteria (e.g., 'Must', 'Should', 'Could') is a customer decision. When a criterion classified as 'Should' is discovered during a quality review, the correct action is to seek confirmation from the customer that the classification is acceptable, as only the customer can decide whether a desirable criterion can be downgraded or reclassified. This ensures the project remains aligned with customer expectations and avoids unauthorized changes to the Project Product Description.

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Remove the criterion from the Project Product Description.

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Ignore the issue because the criterion is already documented.

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Reclassify it as 'Must' to ensure delivery.

Question 10

A project to upgrade the IT infrastructure of a medium-sized company is in the Initiating a Project process. The project manager has created the Business Case, which shows a net present value (NPV) of £150,000 and an internal rate of return (IRR) of 12%. The project board's executive is concerned that the project may not deliver the expected benefits because the market demand for the new infrastructure is uncertain. The project manager is now preparing the Project Plan. What should the project manager do next?

Accepted Answer

Refine the Business Case by including a risk assessment of the market uncertainty and then create the Project Plan based on the refined Business Case.. D is correct because the Business Case must be refined to reflect the market uncertainty before the Project Plan is created. In PRINCE2, the Business Case is a living document that drives decision-making, and the Project Plan is based on it. Including a risk assessment of the market uncertainty ensures the project board can make an informed decision about whether the project remains viable, given the NPV and IRR are based on assumptions that may no longer hold.

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Ask the project board to approve the Project Plan subject to a review of the Business Case later.

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Proceed with the Project Plan as the Business Case already shows a positive NPV.

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Update the Business Case to reflect the uncertainty and seek approval from the project board before proceeding with the Project Plan.

Question 11

Drag and drop the steps to create a PRINCE2 project plan into the correct order.

Accepted Answer

Step 1: Design the plan, Step 2: Define and analyze products, Step 3: Identify activities and dependencies, Step 4: Estimate, Step 5: Schedule and document the plan. Planning steps: design the plan, define products, identify activities, estimate, and schedule/document.

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Step 1: Define and analyze products, Step 2: Design the plan, Step 3: Identify activities and dependencies, Step 4: Estimate, Step 5: Schedule and document the plan

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Step 1: Design the plan, Step 2: Identify activities and dependencies, Step 3: Define and analyze products, Step 4: Estimate, Step 5: Schedule and document the plan

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Step 1: Design the plan, Step 2: Define and analyze products, Step 3: Estimate, Step 4: Identify activities and dependencies, Step 5: Schedule and document the plan

Question 12

Match each level of management in PRINCE2 to its description.

Accepted Answer

Corporate or Programme Management: The level responsible for the business justification and ensuring the project aligns with organizational strategy.. In PRINCE2, there are four management levels: Corporate or Programme Management (business justification), Directing (overall direction), Managing (day-to-day management), and Delivering (product creation). Common confusions include mixing the responsibilities of the Project Board and Project Manager, or attributing delivery tasks to higher levels.

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Corporate or Programme Management: The level responsible for delivering project products.

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Managing (Project Manager): The level responsible for overall direction of the project.

Question 13

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

Accepted Answer

Project Initiation Documentation. The Initiating a Project process is where the project's foundations are solidified, and its key output is the Project Initiation Documentation (PID). The PID compiles the Project Brief, Business Case, Project Plan, and other management strategies into a single, consolidated document that defines what, why, who, when, and how of the project, forming the basis for management control and decision-making.

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Project Brief

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Project Plan

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Business Case

Question 14

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

Accepted Answer

Issue an Exception Report to the Project Board. Management by exception dictates that when a tolerance is forecast to be exceeded, the Project Manager must escalate to the Project Board via an Exception Report. Continuing without escalation is not allowed.

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Continue with the current plan and adjust the budget in the next stage

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Close the project immediately

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Reduce the scope to stay within budget without informing the Board

Question 15

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

Accepted Answer

To plan the next stage in detail and obtain Project Board approval. Managing a Stage Boundary (SB) is designed to provide the Project Board with information to review the current stage's performance, approve the next stage plan, and update the Business Case and project plan.

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To manage the day-to-day activities of the team

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To close the project and produce the End Project Report

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To initiate the project and create the PID