- A
The Project Board sets stage tolerances for the Project Manager
The Board delegates authority via stage tolerances.
- B
If a stage tolerance is exceeded, the Project Manager must escalate
Exceeding tolerance requires an Exception Report.
- C
Tolerances apply only to time and cost
Why wrong: Tolerances also apply to scope, quality, risk, and benefits.
- D
The Project Manager can never change tolerances without Board approval
Why wrong: Within a stage, the PM can reallocate tolerance between activities as long as the overall stage tolerance is not exceeded.
- E
Tolerances are set only at project level
Why wrong: Tolerances are set at project and stage levels.
Question 782 of 1,731
Tolerance in PRINCE2
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.
Which TWO of the following are correct statements about tolerance in PRINCE2?
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
✓
The Project Board sets stage tolerances for the Project Manager
Option A is correct because in PRINCE2, the Project Board sets stage tolerances for the Project Manager as part of the 'Manage by Stages' principle. This allows the Project Manager to manage the stage within defined tolerances without needing to escalate every minor deviation, ensuring delegated authority is clear and controlled.
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.
- ✓
The Project Board sets stage tolerances for the Project Manager
Why this is correct
The Board delegates authority via stage tolerances.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
If a stage tolerance is exceeded, the Project Manager must escalate
Why this is correct
Exceeding tolerance requires an Exception Report.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Tolerances apply only to time and cost
Why it's wrong here
Tolerances also apply to scope, quality, risk, and benefits.
- ✗
The Project Manager can never change tolerances without Board approval
Why it's wrong here
Within a stage, the PM can reallocate tolerance between activities as long as the overall stage tolerance is not exceeded.
- ✗
Tolerances are set only at project level
Why it's wrong here
Tolerances are set at project and stage levels.
Common exam traps
Common exam trap: answer the scenario, not the keyword
A common misconception is that tolerances apply only to time and cost, but PRINCE2 explicitly includes scope, quality, risk, and benefits as additional tolerance dimensions.
Detailed technical explanation
How to think about this question
Tolerances are a key mechanism for 'Management by Exception' in PRINCE2, allowing each management level to set permissible deviations for delegated work. For example, a Project Manager may have a stage tolerance of ±5% on cost and ±2 weeks on time; if the cost exceeds 5%, they must escalate to the Project Board, but they can re-allocate unused time tolerance to cover a cost overrun within the combined tolerance envelope. This ensures that escalation only occurs when the deviation threatens the stage or project plan, reducing unnecessary reporting overhead.
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 practitioner preparing for the PRINCE2F exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
Got this wrong? Here's your next step.
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FAQ
Questions learners often ask
What does this PRINCE2F question test?
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: The Project Board sets stage tolerances for the Project Manager — Option A is correct because in PRINCE2, the Project Board sets stage tolerances for the Project Manager as part of the 'Manage by Stages' principle. This allows the Project Manager to manage the stage within defined tolerances without needing to escalate every minor deviation, ensuring delegated authority is clear and controlled.
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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Last reviewed: Jul 4, 2026
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.
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