PRINCE2F People: organizations, teams, and leadership 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. This is the principle of management by exception.
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 and report the overrun in the next Highlight Report
Why it's wrong here
Escalation is immediate via an Exception Report, not deferred to the next Highlight Report.
- ✗
Increase the budget and continue with the current plan
Why it's wrong here
The Project Manager cannot unilaterally increase the budget; that requires Project Board approval.
- ✗
Close the project as the Business Case is no longer viable
Why it's wrong here
Cost overrun does not automatically mean the Business Case is unviable; the Project Board decides.
- ✓
Raise an Exception Report to the Project Board
Why this is correct
The Exception Report is the formal mechanism to escalate tolerance deviations to the Project Board.
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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.