PRINCE2F PRINCE2 Practices Practice Question
A project is forecast to exceed its stage 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 and await directions
According to PRINCE2's management by exception principle, if a stage tolerance is forecast to be exceeded, the Project Manager must escalate to the Project Board via an Exception Report. The PM cannot exceed tolerance without authorization.
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 and await directions
Why this is correct
When stage tolerance is forecast to be exceeded, the PM must escalate via an Exception Report to the Project Board, which will decide on corrective action.
- ✗
Increase the stage budget by using the project's change budget
Why it's wrong here
The change budget is for authorized changes, not for covering tolerance overruns. The PM cannot unilaterally increase the stage budget.
- ✗
Continue with the current plan and report the overrun in the next Highlight Report
Why it's wrong here
Continuing without escalation violates management by exception. The PM must escalate immediately.
- ✗
Close the project as the Business Case is no longer viable
Why it's wrong here
A cost overrun does not automatically invalidate the Business Case. The Project Board will assess viability.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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