PRINCE2-PRACTITIONER Practices Practice Question
A project manager is developing a Business Case and needs to account for the operational costs that will occur after the project is completed and handed over to operations. What PRINCE2 term describes these ongoing costs?
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
✓
Whole-life costs
Ongoing costs incurred after project handover to operate and maintain the output are termed operational costs or whole-life costs alongside development costs.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Contingency reserves
Why it's wrong here
Contingency reserves are funds held for unforeseen risks.
- ✗
Stage tolerance costs
Why it's wrong here
Stage tolerance costs refer to financial boundaries within a management stage.
- ✗
Sunk costs
Why it's wrong here
Sunk costs are past costs that cannot be recovered.
- ✓
Whole-life costs
Why this is correct
Whole-life costs encompass both development costs and ongoing operational/maintenance costs.
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.