PRINCE2F PRINCE2 Practices Practice Question
During a stage, the Project Manager notices that a work package is likely to exceed its agreed cost tolerance. According to PRINCE2, what should the Project Manager do first?
⚠ Common exam trap
The trap here is assuming any deviation requires immediate escalation to the Project Board.
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
✓
Take corrective action within the stage tolerance
In PRINCE2, the Project Manager is responsible for managing the stage within the tolerances set by the Project Board. When a work package is forecast to exceed its cost tolerance, the Project Manager should first take corrective action to bring it back within tolerance, provided the stage tolerance is not breached. Only if the stage tolerance is threatened should an Exception Report be raised.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Take corrective action within the stage tolerance
Why this is correct
The Project Manager should first attempt to correct the situation within the stage tolerance. If the work package is likely to exceed its cost tolerance, the Project Manager can take corrective action, such as reallocating resources or negotiating changes, as long as the stage tolerance is not breached.
- ✗
Inform the Project Board and wait for instructions
Why it's wrong here
The Project Manager has delegated authority to manage the stage within its tolerances. Informing the Project Board immediately without taking any corrective action is not appropriate; the Project Manager should act first and only escalate if the stage tolerance is threatened.
- ✗
Update the Business Case and close the stage
Why it's wrong here
Updating the Business Case is part of managing benefits, but closing the stage is not the immediate response to a work package cost overrun. The Project Manager should first address the deviation within the stage, not prematurely close the stage.
- ✗
Raise an Exception Report to the Project Board
Why it's wrong here
An Exception Report is raised when a stage or project is forecast to exceed its tolerances, but the first step is to assess the situation and consider corrective action. Raising an Exception Report immediately without evaluating options is premature and not the prescribed first action.
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official PeopleCert exam blueprint
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.