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PRINCE2-PRACTITIONER Practices Practice Question

During project monitoring, the Project Manager notes that cumulative expenditure is trending outside the stage cost tolerance. According to the Progress practice, what action must the Project Manager take immediately?

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 to the Project Board

When a forecast shows that stage tolerances will be exceeded, the Project Manager must raise an Exception Report to inform the Project Board.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Reduce the quality criteria of remaining deliverables to save money

    Why it's wrong here

    Quality baselines must not be arbitrarily reduced to fix cost variances.

  • Wait until the end of the stage and report it in the End Stage Report

    Why it's wrong here

    Waiting until the end of the stage defeats the purpose of management by exception.

  • Raise an Exception Report to the Project Board

    Why this is correct

    Correct. An Exception Report is mandatory when tolerances are forecast to be breached.

  • unilaterally shift funds from the next stage plan without approval

    Why it's wrong here

    Moving funds across stages requires Project Board approval via an exception plan.

About these practice questions

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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.