PRINCE2F PRINCE2 Practices Practice Question
The Project Board is considering whether to authorize the next stage. The current stage has used all its cost tolerance. What should the Project Board do?
⚠ Common exam trap
Many exam-takers assume the board can simply adjust tolerances or proceed as normal, failing to recognize that PRINCE2 mandates an Exception Plan when a stage exceeds its tolerance, not just a simple revision of the budget.
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
✓
Request an Exception Plan before authorizing the next stage
According to PRINCE2, if a stage has exceeded its cost tolerance, the Project Board cannot authorize the next stage without first assessing the situation. The correct action is to request an Exception Plan, which details how to recover from the deviation and bring the project back within tolerance. This ensures the board has a revised forecast and recovery strategy before committing to further expenditure.
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 before authorizing the next stage
Why this is correct
To address the tolerance breach, the Board should request an Exception Plan to adjust future plans.
- ✗
Revise the project's cost tolerance
Why it's wrong here
The Board could revise project-level tolerance, but this is not the immediate step; an Exception Plan addresses the stage breach.
- ✗
Close the project immediately
Why it's wrong here
Closing may be an option but is not the only action; the Board should first consider an Exception Plan.
- ✗
Authorize the next stage as planned
Why it's wrong here
The tolerance has been fully used; continuing without change risks exceeding overall budget.
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