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PRINCE2F PRINCE2 Practices Practice Question

A project is forecast to exceed its cost tolerance. 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 a 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.

  • Continue with the current Stage Plan and report in the next Highlight Report

    Why it's wrong here

    Continuing without escalation violates management by exception.

  • Raise an Exception Report to the Project Board

    Why this is correct

    This is the correct response to a forecast tolerance breach.

  • Increase the project budget to absorb the additional cost

    Why it's wrong here

    The Project Manager cannot unilaterally increase the budget.

  • Close the project immediately

    Why it's wrong here

    The decision to close is for the Project Board, not automatic.

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