PRINCE2F PRINCE2 Processes Practice Test 2 — 15 Questions

Question 1

You are the project manager for a software development project following PRINCE2. The project is in its second stage, which has a budget tolerance of 10% above the planned cost of $200,000. The project board is composed of the executive, senior user, and senior supplier. The team has been working on a critical feature, but a key supplier has announced a 15% price increase for their services, effective immediately. This increase will push the stage costs to $230,000, exceeding the tolerance. The project manager must decide the best course of action. Which option should the project manager take?

Accepted Answer

Raise an exception report to the project board, detailing the cost increase and seeking guidance.. Option D is correct because PRINCE2 mandates that when a stage's forecast exceeds its tolerance (here, 10% above $200,000 = $220,000, and the new cost is $230,000), the project manager must raise an Exception Report to the project board. The board, comprising the executive, senior user, and senior supplier, then decides on corrective actions—such as approving additional budget, renegotiating scope, or stopping the project. The project manager cannot unilaterally approve the overrun or bypass the board.

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Stop the project and close it prematurely.

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Negotiate with the supplier for a discount and continue the stage work without escalation.

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Approve the additional cost from the project's contingency budget without informing the board.

Question 2

You are the project manager for a construction project. The project is in the Initiating a Project process. The project board has approved the project brief, and you are now developing the project initiation documentation (PID). During this process, you identify that the project's business case is no longer viable due to a change in market conditions. What is the most appropriate action?

Accepted Answer

Advise the project board that the business case is no longer viable and recommend project closure.. In PRINCE2, the project board is responsible for making decisions about project viability, including closure. During the Initiating a Project process, if the business case becomes unviable, the project manager must escalate this to the project board, who then decides whether to close the project. Option C correctly reflects this by advising the board and recommending closure, aligning with the 'continued business justification' principle.

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Continue developing the PID as planned and submit it to the project board.

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Make the decision to close the project yourself and inform the team.

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Request additional time to find alternative justifications for the project.

Question 3

A project manager is initiating a project using PRINCE2. The project board has approved the project mandate, but the project manager is unsure about the next step. Which process should be executed first?

Accepted Answer

Starting up a Project. The correct answer is A, Starting up a Project. According to PRINCE2, the first process after the project mandate is approved is 'Starting up a Project'. This process ensures that the project is viable and that the necessary people are appointed (e.g., the Executive, Senior User, and Senior Supplier) before any detailed planning or initiation begins. The project manager must execute this process to create the Project Brief and prepare for the 'Initiating a Project' process.

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Managing a Stage Boundary

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Directing a Project

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Initiating a Project

Question 4

Which TWO statements about the Initiating a Project process are correct?

Accepted Answer

The Project Initiation Documentation is produced during this process.. Option B is correct because the Initiating a Project process is where the Project Initiation Documentation (PID) is produced. The PID consolidates key planning information, including the detailed business case, project plan, and risk register, to form a solid foundation for the project. This process ensures that all stakeholders have a shared understanding of the project's scope, objectives, and approach before proceeding.

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The project manager is appointed during this process.

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The Project Initiation Documentation is created in Starting up a Project.

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The project brief is created during this process.

Question 5

Refer to the exhibit. The project manager is reviewing a completed work package in Stage 2. The actual cost exceeds the planned cost by $5,000. What should the project manager do?

Accepted Answer

Escalate the issue to the project board as an exception.. Option C is correct because the work package is complete but the actual cost exceeds the planned cost by $5,000, which exceeds the tolerance set for the work package. In PRINCE2, any deviation beyond the agreed tolerance must be escalated to the Project Board as an exception, as the Project Manager cannot approve such variances themselves.

Answer

Update the project plan to reflect the actual cost.

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Record the actual cost and continue with the project.

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Accept the variance as the work package is complete.

Question 6

Drag and drop the steps to manage a configuration item in PRINCE2 into the correct order.

Question 7

Match each PRINCE2 technique to its description.

Question 8

Which process is responsible for creating the Project Brief?

Accepted Answer

Starting Up a Project. The Starting Up a Project (SU) process produces the Project Brief to provide a basis for deciding whether to proceed with the project.

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Controlling a Stage

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Directing a Project

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Initiating a Project

Question 9

Who is responsible for authorizing the initiation of a project?

Accepted Answer

Project Board. The Project Board, through the Directing a Project process, authorizes the initiation of a project.

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Team Manager

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Project Manager

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Senior User

Question 10

A project is in the Initiating a Project process. Which document is the key output that defines how the project will be managed?

Accepted Answer

Project Initiation Documentation. The Project Initiation Documentation (PID) is the key output of IP, consolidating all management approaches and plans.

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Stage Plan

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Project Brief

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Business Case

Question 11

During the Controlling a Stage process, which report does the Project Manager send to the Project Board?

Accepted Answer

Highlight Report. The Highlight Report is a periodic report from the PM to the Project Board on stage progress.

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Exception Report

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Checkpoint Report

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End Stage Report

Question 12

A Team Manager has completed the work assigned in a Work Package. Which process is used to deliver the completed products back to the Project Manager?

Accepted Answer

Managing Product Delivery. Managing Product Delivery (MP) is the process where the Team Manager accepts, executes, and delivers Work Packages.

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Managing a Stage Boundary

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Controlling a Stage

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Closing a Project

Question 13

What is the primary difference between Starting Up a Project (SU) and Initiating a Project (IP)?

Accepted Answer

SU is performed before the Project Board authorizes initiation; IP is performed after. SU is a pre-project process to determine if there is a viable project; IP formally establishes the project with detailed planning and management approaches.

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SU produces the Project Plan; IP produces the Stage Plan

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SU is optional; IP is mandatory

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SU appoints the Project Manager; IP appoints the Executive

Question 14

During the Managing a Stage Boundary process, the Project Manager produces an End Stage Report. What is the purpose of this report?

Accepted Answer

To summarize the stage's actual performance against the plan and request authorization for the next stage. The End Stage Report provides the Project Board with information to decide whether to continue to the next stage.

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To report on the progress of work packages within the stage

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To document lessons learned for the entire project

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To close the project

Question 15

The Project Manager identifies that the project's approved Business Case is no longer viable. Which process should the Project Manager use to escalate this?

Accepted Answer

Controlling a Stage. The Project Manager should escalate via an Exception Report in Controlling a Stage (CS) or at a stage boundary. However, if within a stage, CS is the appropriate process to raise the exception.

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Directing a Project

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Starting Up a Project

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Closing a Project