PRINCE2F PRINCE2 Processes Practice Question
A project manager is preparing the End Stage Report for the second stage. The project's planned budget for the stage is $500,000, but actual costs are $520,000. The project board is concerned about cost overrun. What is the most appropriate action for the project manager?
⚠ Common exam trap
PeopleCert often tests the distinction between reporting variances within tolerance (End Stage Report) versus exceeding tolerance (Exception Report), and the trap here is assuming any cost overrun automatically triggers an exception report, ignoring the role of tolerance thresholds.
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
✓
Include the cost variance and updated forecast in the End Stage Report and submit it.
The End Stage Report is the formal mechanism to report stage performance, including cost variances, to the Project Board. The project manager must include the actual cost ($520,000) against the planned budget ($500,000) and provide an updated forecast, allowing the board to make an informed decision. This aligns with PRINCE2's management by exception principle, where variances within tolerance are reported in the End Stage Report, not via 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.
- ✗
Request immediate additional budget from the project board before submitting the report.
Why it's wrong here
The project board should be informed via the End Stage Report first.
- ✗
Ignore the overrun because it is within the tolerance set by the project board.
Why it's wrong here
The overrun of $20,000 may exceed tolerance; the report must reflect actuals.
- ✓
Include the cost variance and updated forecast in the End Stage Report and submit it.
Why this is correct
The report should highlight variances and forecasts for the next stage.
- ✗
Raise an exception report to the project board immediately.
Why it's wrong here
An exception report is used when tolerances are forecast to be exceeded; but the stage is ending, so the End Stage Report is appropriate.
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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.