PRINCE2F PRINCE2 Practices Practice Question
A project is forecast to exceed its cost tolerance at the project level. 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
✓
Raise an Exception Report to the Project Board
When project-level tolerance is forecast to be exceeded, the Project Manager must escalate to the Project Board via an Exception Report.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Update the Business Case to reflect the new costs
Why it's wrong here
The Project Board must decide on any changes to the project, including tolerance breaches.
- ✓
Raise an Exception Report to the Project Board
Why this is correct
The Project Manager should raise an Exception Report to the Project Board for decision.
- ✗
Continue as planned and inform the Project Board in the next Highlight Report
Why it's wrong here
Exceeding project-level tolerance requires immediate escalation, not delayed reporting.
- ✗
Use the risk budget to cover the extra cost
Why it's wrong here
The risk budget is for identified risks, not for tolerance breaches.
Go deeper
Related to this question
About these practice questions
This PRINCE2F question is part of Courseiva's 1,599-question bank — original exam-style content with full explanations and wrong-answer analysis, never real exam questions or exam dumps. Learn why practice questions differ from exam dumps →
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This PRINCE2F practice question is part of Courseiva's free 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 PRINCE2F exam.