PRINCE2F PRINCE2 Processes Practice Test 3 — 15 Questions

Question 1

Refer to the exhibit. A project has just completed the Starting up a Project process and received authorization to initiate. Which process should the project manager execute next?

Accepted Answer

Initiating a Project. After the Starting up a Project process, the project has received authorization to initiate. The next logical step is to plan the project in detail, which is done in the Initiating a Project process. This process produces the Project Initiation Documentation (PID) and establishes a solid foundation for the project. Therefore, option C is correct.

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Managing Product Delivery

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Controlling a Stage

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Directing a Project

Question 2

Refer to the exhibit. The project board is reviewing the End Stage Report for Stage 2 and the Stage Plan for Stage 3. The Stage Plan for Stage 3 exceeds the agreed cost tolerance. According to PRINCE2, what should the project board do?

Accepted Answer

Ask the project manager to produce an Exception Plan for Stage 3. According to PRINCE2, when a Stage Plan exceeds the agreed cost tolerance, the project board cannot approve it. Instead, the project manager must produce an Exception Plan that describes the options to bring the stage back within tolerance or to request a revised tolerance. This is a formal exception management process defined in the PRINCE2 manual.

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Approve the Stage Plan as it is, since Stage 2 was completed within tolerance

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Reject the Stage Plan and ask the project manager to terminate the project

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Lower the cost tolerance for Stage 3 to match the plan

Question 3

During the Initiating a Project process, the project manager is reviewing the Business Case. Which statement best describes the purpose of this review?

Accepted Answer

To develop a detailed justification for the project and confirm it remains viable.. During the Initiating a Project process, the Business Case is reviewed to develop a detailed justification for the project and confirm it remains viable. This involves refining the outline Business Case from the Starting Up a Project process into a fully detailed document that justifies the project's continued existence based on costs, benefits, risks, and timescales. The review ensures the project is still aligned with corporate objectives and that the investment is worthwhile before proceeding to the next stage.

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To confirm the project's scope and high-level risks before the project mandate is issued.

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To authorize work packages for the first stage of the project.

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To obtain final approval from the project board before project execution begins.

Question 4

A project is underway, and the project manager notices that the team is frequently re-prioritizing work and losing focus. Which PRINCE2 process should the project manager use to re-establish control?

Accepted Answer

Controlling a Stage. The project manager should use the Controlling a Stage process because it is specifically designed to monitor the day-to-day work of the stage, manage issues and risks, and take corrective action to keep the stage on track. The symptom of frequent re-prioritization and loss of focus indicates a lack of control within the current stage, which this process directly addresses by providing mechanisms for work package assignment, progress monitoring, and escalation. It ensures the stage remains within tolerance and that the team's efforts are aligned with the stage plan.

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Managing Product Delivery

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Managing a Stage Boundary

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Directing a Project

Question 5

A project manager is preparing the End Stage Report for the second stage. The project's planned budget for the stage is $500,000, but actual costs are $520,000. The project board is concerned about cost overrun. What is the most appropriate action for the project manager?

Accepted Answer

Include the cost variance and updated forecast in the End Stage Report and submit it.. The End Stage Report is the formal mechanism to report stage performance, including cost variances, to the Project Board. The project manager must include the actual cost ($520,000) against the planned budget ($500,000) and provide an updated forecast, allowing the board to make an informed decision. This aligns with PRINCE2's management by exception principle, where variances within tolerance are reported in the End Stage Report, not via an exception report.

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Request immediate additional budget from the project board before submitting the report.

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Ignore the overrun because it is within the tolerance set by the project board.

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Raise an exception report to the project board immediately.

Question 6

A project team is about to begin the first stage of a project. The project board has approved the project initiation documentation. Which process should be used to authorize the work?

Accepted Answer

Directing a Project. After the PID is approved, the project board authorizes the work for the first stage via the Directing a Project process, specifically the 'Authorize the project' activity. This process provides the necessary authorization for the project manager to start the first stage. Initiating a Project produces the PID, but authorization to proceed is given by the project board through Directing a Project.

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Starting Up a Project

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Managing Product Delivery

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Initiating a Project

Question 7

Which TWO activities are part of the Closing a Project process?

Accepted Answer

Evaluate the project and document lessons learned.. Evaluating the project and documenting lessons learned is a key activity in the Closing a Project process, as it captures knowledge for future projects. Option D is correct because preparing the End Project Report is also a mandatory activity in this process, providing a final assessment of project performance against the business case and plans.

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Create the project plan.

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Plan the next stage.

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Approve work packages.

Question 8

Refer to the exhibit.

PRINCE2 Configuration Item Record
Item ID: CI-103
Product: User Authentication Module
Version: 2.1
Status: Under Development
Baseline: 2.0
Last Review: 2024-01-15
Owner: Project Support Office

Issue: The team reports that the latest version (2.1) has a critical defect. The status is 'Under Development' but the baseline is still 2.0. What process should the project manager follow?

Accepted Answer

Log the defect as an issue and manage it through Controlling a Stage.. The defect in version 2.1 of the User Authentication Module is a new issue that must be formally logged and managed within the current stage. PRINCE2 requires that all issues (including defects) be captured in the Issue Register and handled through the Controlling a Stage process, which includes assessing the impact, deciding on corrective action, and updating the Configuration Item Record (CIR) accordingly. The baseline remains 2.0 because version 2.1 is still under development and has not been baselined, so the defect does not trigger a baseline change request.

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Include the defect in the next Managing a Stage Boundary report.

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Update the configuration item record and close the project.

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Raise an exception report to the project board for a baseline change.

Question 9

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.. 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 10

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 11

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. 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 12

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

Accepted Answer

The Project Initiation Documentation is produced during this process.. 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 13

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.. 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.

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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 14

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

Accepted Answer

First identify the configuration item, then control changes to it, then record its status, then verify it, and finally report.. Configuration management: identify, control changes, record status, verify, and report.

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First control changes to the configuration item, then identify it, then record its status, then verify it, and finally report.

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First identify the configuration item, then record its status, then control changes, then verify it, and finally report.

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First identify the configuration item, then control changes, then verify it, then record its status, and finally report.

Question 15

Match each PRINCE2 technique to its description.

Accepted Answer

Product-Based Planning: A technique that identifies and defines the products of a project and their relationships.. The correct matches are: Product-Based Planning (identification of products and their relationships), Quality Review (reviewing product quality and identifying defects), Change Control (managing change requests), and Configuration Management (controlling and tracking product versions). Common confusions arise from mixing the definitions of Quality Review and Change Control.

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Product-Based Planning: A technique that reviews the quality of products and identifies defects.

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Quality Review: A technique that manages requests for changes to baselined products.