- A
Raise an Exception Report to the Project Board and await directions
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.
- B
Increase the stage budget by using the project's change budget
Why wrong: The change budget is for authorized changes, not for covering tolerance overruns. The PM cannot unilaterally increase the stage budget.
- C
Continue with the current plan and report the overrun in the next Highlight Report
Why wrong: Continuing without escalation violates management by exception. The PM must escalate immediately.
- D
Close the project as the Business Case is no longer viable
Why wrong: A cost overrun does not automatically invalidate the Business Case. The Project Board will assess viability.
PRINCE2F PRINCE2 Practices Practice Question
This PRINCE2F practice question tests your understanding of prince2 practices. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
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.
Key principle: Authentication proves identity; authorization controls what that identity can do after login. Both must work for full privileged access.
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.
Related concept
Authentication checks who the user is.
- ✗
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.
Common exam traps
Common exam trap: authentication is not authorization
Logging in proves the user can authenticate. It does not automatically mean the user is allowed to enter privileged or configuration mode. Watch for AAA authorization, privilege level and command authorization details.
Detailed technical explanation
How to think about this question
This kind of question is testing the difference between identity and permission. A user may successfully log in to a router because authentication is working, but still fail to enter configuration mode because authorization is missing, misconfigured or mapped to a lower privilege level.
KKey Concepts to Remember
- Authentication checks who the user is.
- Authorization controls what the user is allowed to do after login.
- Privilege levels affect access to EXEC and configuration commands.
- AAA, TACACS+ and RADIUS can separate login success from command access.
TExam Day Tips
- Do not assume successful login means full administrative access.
- Look for words such as cannot enter configuration mode, privilege level, authorization or command access.
- Separate login problems from permission problems before choosing the answer.
Key takeaway
Authentication proves identity; authorization controls what that identity can do after login. Both must work for full privileged access.
Real-world example
How this comes up in practice
A junior network technician can log in to a core router but cannot reach the enable prompt or configuration mode. The AAA server is authenticating the login — but the authorisation policy only grants privilege level 1, not 15. Authentication (who you are) is working; authorisation (what you can do) is not.
What to study next
Got this wrong? Here's your next step.
Review Cisco AAA concepts — authentication, authorization, and accounting. Study privilege levels (0–15), command authorization under TACACS+, and how RADIUS differs. Then practise related PRINCE2F questions on access control and AAA configuration.
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FAQ
Questions learners often ask
What does this PRINCE2F question test?
PRINCE2 Practices — This question tests PRINCE2 Practices — Authentication checks who the user is..
What is the correct answer to this question?
The correct answer is: 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.
What should I do if I get this PRINCE2F question wrong?
Review Cisco AAA concepts — authentication, authorization, and accounting. Study privilege levels (0–15), command authorization under TACACS+, and how RADIUS differs. Then practise related PRINCE2F questions on access control and AAA configuration.
What is the key concept behind this question?
Authentication checks who the user is.
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Last reviewed: Jun 21, 2026
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