PRINCE2F PRINCE2 Practices Practice Question
During the 'Controlling a Stage' process, the Project Manager is reviewing the stage status and notices that a Work Package is forecast to exceed its cost tolerance. What is the correct PRINCE2 action for the Project Manager to take?
⚠ Common exam trap
A common mix-up: candidates confuse Work Package tolerances with stage tolerances, leading to either premature escalation or failure to escalate when the stage tolerance is threatened.
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, and if the stage tolerance is also forecast to be exceeded, escalate to the project board with an Exception Report.
The Project Manager must first manage the Work Package deviation within the stage tolerance. If corrective action cannot keep the stage within its tolerance, the Project Manager must escalate to the project board with an Exception Report, as the stage is in exception. Immediate escalation without corrective action or unilateral plan changes are not appropriate.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Ask the project board for a change to the Work Package cost tolerance so that the forecast cost becomes acceptable.
Why it's wrong here
Requesting a change to the Work Package tolerance is not the correct first step. The project board sets stage tolerances, not Work Package tolerances; the latter are agreed between the Project Manager and the Team Manager. The Project Manager should manage the deviation within the stage, and only escalate if the stage tolerance is threatened. This option misunderstands the tolerance hierarchy.
- ✓
Take corrective action within the stage tolerance, and if the stage tolerance is also forecast to be exceeded, escalate to the project board with an Exception Report.
Why this is correct
The Project Manager is responsible for managing the stage within its tolerances. If a Work Package is forecast to breach its own cost tolerance, the Project Manager should first attempt corrective action. If the stage-level tolerance is also threatened, the Project Manager must escalate by producing an Exception Report to the project board, as the stage can no longer be managed within delegated authority.
- ✗
Immediately escalate to the project board with an Exception Report, without taking any corrective action.
Why it's wrong here
Escalating immediately without first attempting corrective action is premature. The Project Manager has authority to manage the stage within its tolerances and should try to resolve the issue. Only if the stage tolerance is forecast to be breached should an Exception Report be raised. This approach ensures that the project board is not burdened with issues that can be resolved at the stage level.
- ✗
Update the Stage Plan to reflect the increased cost and continue without informing the project board, as the Work Package tolerance is not the same as the stage tolerance.
Why it's wrong here
Updating the Stage Plan without informing the project board when a tolerance breach is forecast would violate the 'manage by exception' principle. Even if the Work Package tolerance is breached, the Project Manager must assess the impact on the stage tolerance and escalate if necessary. Unilateral plan changes undermine governance and transparency.
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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
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