PRINCE2F Practice Question: Overview of PRINCE2 and the project environment
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
According to the management by exception principle, exceeding tolerance must be escalated 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 and report in the next Highlight Report
Why it's wrong here
Immediate escalation is required.
- ✓
Raise an Exception Report to the Project Board
Why this is correct
Correct; this triggers management by exception.
- ✗
Increase the budget to cover the overrun
Why it's wrong here
The Project Manager cannot change tolerances without Board approval.
- ✗
Close the project immediately
Why it's wrong here
The Board decides whether to close or not.
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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.