The answer is that the project board should review the End Stage Report and decide whether to authorize the next stage. This is correct because in PRINCE2, the decision at a stage boundary is driven by continued business justification, not by cost performance alone; being under budget with scope complete does not bypass the board’s governance duty to assess overall viability, risks, and lessons learned before proceeding. On the PRINCE2 Foundation exam, this tests your understanding of the project board’s role at stage boundaries versus exception management—a common trap is assuming lower costs trigger an automatic exception plan or immediate authorization, when in fact the board must still formally authorize the next stage. Remember the memory tip: “Under budget, still a boundary—review, don’t rush.”
PRINCE2F PRINCE2 Practices Practice Question
This PRINCE2F practice question tests your understanding of prince2 practices. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
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?
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.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
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.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
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.
Detailed technical explanation
How to think about this question
In PRINCE2, the End Stage Report provides a comparison of actual vs. planned performance, including costs, scope, and quality, and is used by the project board to assess whether the project should proceed to the next stage. The board's decision is based on the business case, risk assessment, and lessons learned, not just cost variance; a cost surplus may be returned to the corporate portfolio or used to fund contingency, but this is a strategic decision outside the project manager's authority. Real-world scenarios often involve under-budget stages due to efficiency gains or scope reductions, and the board must evaluate if the surplus indicates a need to adjust future stage plans or if it reflects a one-time saving.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
TExam Day Tips
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A junior network technician can log in to a core router but cannot reach the enable prompt or configuration mode. The AAA server is authenticating the login — but the authorisation policy only grants privilege level 1, not 15. Authentication (who you are) is working; authorisation (what you can do) is not.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
PRINCE2 Practices — This question tests PRINCE2 Practices — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: 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.
What should I do if I get this PRINCE2F question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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