PRINCE2F PRINCE2 Processes 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
In PRINCE2, management by exception means the Project Manager must escalate to the Project Board when a stage tolerance is forecast to be exceeded. The correct action is to raise 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 the overrun in the next Highlight Report
Why it's wrong here
Immediate escalation is required; waiting for the next Highlight Report violates management by exception.
- ✗
Close the project as the Business Case is no longer viable
Why it's wrong here
Only the Project Board can decide to close the project based on an Exception Report.
- ✓
Raise an Exception Report to the Project Board
Why this is correct
This is the correct escalation procedure when a stage tolerance is forecast to be exceeded.
- ✗
Increase the stage budget to absorb the overrun and continue
Why it's wrong here
The Project Manager cannot unilaterally increase the budget; only the Project Board can authorize changes to tolerances.
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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.