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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

Issue an Exception Report to the Project Board

Management by exception dictates that when a tolerance is forecast to be exceeded, the Project Manager must escalate to the Project Board via an Exception Report. Continuing without escalation is not allowed.

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 plan and adjust the budget in the next stage

    Why it's wrong here

    The Project Manager cannot unilaterally adjust budgets; escalation is required.

  • Close the project immediately

    Why it's wrong here

    The Project Board will decide whether to close; the PM cannot close unilaterally.

  • Issue an Exception Report to the Project Board

    Why this is correct

    An Exception Report is the correct mechanism to escalate the forecast deviation.

  • Reduce the scope to stay within budget without informing the Board

    Why it's wrong here

    Scope changes without authorization are not allowed.

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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.