PRINCE2-PRACTITIONER Processes Practice Question
A project is currently executing the Controlling a Stage (CS) process. The Project Manager notices that cumulative actual costs are tracking significantly below budget while progress is on schedule. What should the Project Manager do?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Report the variance in the next Highlight Report and assess if it impacts stage tolerances or forecasts.
Under CS, unexpected variances (including underspend) should be logged as issues or risks and reported to the Project Board via Highlight Reports so the financial forecast can be adjusted if needed.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Automatically initiate the Closing a Project process early.
Why it's wrong here
Underspending does not mean the project scope has been delivered early; closing early without verified completion is incorrect.
- ✗
Secretly reallocate the surplus funds to personal bonuses without informing anyone.
Why it's wrong here
Reallocating project funds for unauthorized personal use is unethical and breaches governance.
- ✗
Ignore the underspend since being under budget never requires management attention.
Why it's wrong here
Significant variances from cost tolerances (even positive ones) must be managed and understood.
- ✓
Report the variance in the next Highlight Report and assess if it impacts stage tolerances or forecasts.
Why this is correct
All significant variances (positive or negative) must be captured and reported to the Project Board.
About these practice questions
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed August 2026 · checked against the official AXELOS / PeopleCert exam blueprint
This PRINCE2-PRACTITIONER practice question is part of Courseiva's free AXELOS / PeopleCert certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PRINCE2-PRACTITIONER exam.