PRINCE2F PRINCE2 Practices Practice Question
In a project using PRINCE2, the project board is reviewing the End Stage Report. They notice that the actual costs are significantly lower than planned, but the scope is complete. What should the project board do?
⚠ Common exam trap
PeopleCert often tests the misconception that being under budget automatically triggers an exception plan or immediate stage authorization, but PRINCE2 requires the project board to formally review the End Stage Report and make a deliberate decision based on continued business justification, not just cost performance.
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
✓
Review the End Stage Report and decide whether to authorize the next stage
The project board's primary responsibility is to review the End Stage Report and decide whether to authorize the next stage based on continued business justification, not solely on cost performance. Being under budget with scope complete does not automatically trigger an exception plan or immediate authorization; the board must assess the overall viability, risks, and lessons learned before proceeding. Option D correctly reflects the PRINCE2 principle of continued business justification and the board's decision-making authority at stage boundaries.
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 an exception plan to reallocate the surplus
Why it's wrong here
An exception plan is only needed if tolerance is exceeded; here, costs are under tolerance.
- ✗
Immediately authorize the next stage as the project is under budget
Why it's wrong here
The board should first understand the reasons for the under-run before authorizing.
- ✗
Ask the project manager to revise the project plan to increase costs
Why it's wrong here
There is no reason to increase costs; the board should understand the variance first.
- ✓
Review the End Stage Report and decide whether to authorize the next stage
Why this is correct
The board uses the End Stage Report to review performance and make a decision on the next stage.
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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.