PRINCE2F People: organizations, teams, and leadership Practice Question
This PRINCE2F practice question tests your understanding of people: organizations, teams, and leadership. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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 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 direction
Option C is correct because PRINCE2 dictates that when a project manager forecasts a deviation beyond the stage's cost tolerance, they must raise an Exception Report to the Project Board. The Project Board then decides on corrective action, such as approving a revised plan or closing the project. This ensures governance and control over the project's financial limits.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✗
Increase the stage budget and continue with the current plan
Why it's wrong here
The Project Manager cannot unilaterally increase tolerances; that requires Project Board approval.
✗
Continue with the plan and report the overrun in the next Highlight Report
Why it's wrong here
Escalation must be immediate via an Exception Report, not delayed until the next Highlight Report.
✓
Raise an Exception Report to the Project Board and await direction
Why this is correct
This follows management by exception: the PM escalates when tolerances are forecast to be breached.
Related concept
Read the scenario before looking for a memorised answer.
✗
Close the project immediately as the Business Case is no longer viable
Why it's wrong here
A cost tolerance breach does not automatically mean the Business Case is unviable; the Board must assess.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates confuse the Highlight Report (used for routine progress within tolerance) with the Exception Report (mandatory for forecast tolerance breaches), leading them to incorrectly select Option B.
Detailed technical explanation
How to think about this question
In PRINCE2, cost tolerance is a delegated authority from the Project Board to the Project Manager for a specific stage. When a forecast breach occurs, the Project Manager must immediately escalate via an Exception Report, which includes options for corrective action. The Project Board then reviews the Business Case and may approve an exception plan, which resets the stage's tolerance and plan, ensuring the project remains aligned with its justification.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
TExam Day Tips
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A practitioner preparing for the PRINCE2F exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
People: organizations, teams, and leadership — This question tests People: organizations, teams, and leadership — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Raise an Exception Report to the Project Board and await direction — Option C is correct because PRINCE2 dictates that when a project manager forecasts a deviation beyond the stage's cost tolerance, they must raise an Exception Report to the Project Board. The Project Board then decides on corrective action, such as approving a revised plan or closing the project. This ensures governance and control over the project's financial limits.
What should I do if I get this PRINCE2F question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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