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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 PM 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.

  • Raise an Exception Report to the Project Board

    Why this is correct

    Correct action when tolerance is forecast to be exceeded.

  • Close the project immediately

    Why it's wrong here

    Only the Project Board decides to close.

  • Continue with the current plan and report at the next Highlight Report

    Why it's wrong here

    Escalation must be immediate, not delayed.

  • Increase the budget and inform the Project Board

    Why it's wrong here

    The PM cannot increase budget without approval.

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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.