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 forecast indicates that a stage or project tolerance will be exceeded, the Project Manager must escalate via an Exception Report to the Project Board. This is 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.
- ✗
Close the project as the Business Case is no longer viable
Why it's wrong here
Closing the project is a decision for the Project Board, not the PM.
- ✗
Continue with the current Plan and report in the next Highlight Report
Why it's wrong here
Immediate escalation is required due to forecast breach of tolerance.
- ✗
Increase the project budget to absorb the additional cost
Why it's wrong here
The Project Manager cannot unilaterally change the budget.
- ✓
Raise an Exception Report to the Project Board
Why this is correct
An Exception Report is the correct mechanism to escalate tolerance breaches.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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