PRINCE2-PRACTITIONER Practices Practice Question
During a PRINCE2 project stage, the Project Manager forecasts that the stage cost will exceed the upper cost tolerance by 5%. According to the Progress practice, what is the mandatory action the Project Manager must take?
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
✓
Raise an Exception Report and submit it to the Project Board.
When a forecast indicates that tolerances will be exceeded, the Project Manager must raise an Exception Report and notify the Project Board immediately.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Quietly borrow funds from the next stage's budget without informing the Project Board.
Why it's wrong here
Unauthorized budget transfers violate governance controls.
- ✗
Absorb the cost overrun by reducing the quality checks on deliverables.
Why it's wrong here
Reducing quality to save cost is unacceptable in PRINCE2 quality management.
- ✓
Raise an Exception Report and submit it to the Project Board.
Why this is correct
Forecasted tolerance breaches require an Exception Report to be raised for the Project Board.
- ✗
Close the project immediately.
Why it's wrong here
An exception triggers an exception plan or project closure consideration by the Board, not immediate unilateral closure.
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.