PRINCE2F PRINCE2 Processes Practice Question
Exhibit
Refer to the exhibit. Project: Alpha Stage: Stage 2 Work Package: WP-003 Status: Completed Actual Cost: $45,000 Planned Cost: $40,000 % Complete: 100% Tolerance: Cost: +/- 10%
Refer to the exhibit. The project manager is reviewing a completed work package in Stage 2. The actual cost exceeds the planned cost by $5,000. What should the project manager do?
⚠ Common exam trap
It's easy for candidates to assume a completed work package with a cost overrun can simply be accepted or recorded, but PRINCE2 requires escalation whenever tolerances are exceeded, regardless of completion status.
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
✓
Escalate the issue to the project board as an exception.
The work package is complete but the actual cost exceeds the planned cost by $5,000, which exceeds the tolerance set for the work package. In PRINCE2, any deviation beyond the agreed tolerance must be escalated to the Project Board as an exception, as the Project Manager cannot approve such variances themselves.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Update the project plan to reflect the actual cost.
Why it's wrong here
Updating the plan comes after the issue is resolved; first, escalate the exception.
- ✗
Record the actual cost and continue with the project.
Why it's wrong here
The actual cost exceeds tolerance, so an exception report is needed before continuing.
- ✓
Escalate the issue to the project board as an exception.
Why this is correct
Since the cost variance exceeds the work package tolerance, the project manager must escalate via an exception report.
- ✗
Accept the variance as the work package is complete.
Why it's wrong here
The variance exceeds the 10% tolerance, so it cannot be accepted without escalation.
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