PRINCE2F PRINCE2 Practices Practice Question
Which TWO statements about PRINCE2's management by exception are correct?
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
✓
If a tolerance is forecast to be exceeded, the Project Manager must escalate
Management by exception means delegating authority within tolerances and escalating when tolerances are forecast to be exceeded.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Tolerances apply only to time and cost
Why it's wrong here
Tolerances also apply to scope, quality, risk, and benefits.
- ✗
The Project Manager sets the project's tolerances
Why it's wrong here
The Project Board sets tolerances.
- ✓
If a tolerance is forecast to be exceeded, the Project Manager must escalate
Why this is correct
Correct: escalation via Exception Report is required.
- ✗
The Project Board is involved in all day-to-day decisions
Why it's wrong here
The Board is not involved in day-to-day decisions; that's management by exception.
- ✓
The Project Manager can make decisions within agreed tolerances
Why this is correct
Correct: the PM works within tolerances set by the Board.
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Same concept, more angles
3 more ways this is tested on PRINCE2F
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Which THREE of the following are correct about the PRINCE2 progress practice?
hard- ✓ A.Highlight Reports are produced by the Project Manager for the Project Board.
- B.The Project Manager sets stage tolerances for the project.
- C.Tolerances are only set at the project level, not at the stage level.
- ✓ D.The Project Board uses management by exception to control the project.
- ✓ E.Checkpoint Reports are produced by Team Managers for the Project Manager.
Why A: Highlight Reports are produced by the Project Manager for the Project Board to report progress and issues. Option D is correct: The Project Board uses management by exception, setting tolerances and only intervening when breaches occur. Option E is correct: Checkpoint Reports are produced by Team Managers for the Project Manager to report progress at the work package level. Option B is incorrect because the Project Board sets stage tolerances, not the Project Manager. Option C is incorrect because tolerances are set at both project and stage levels.
Variation 2. Which TWO of the following statements about the Progress practice are correct?
hard- A.An Exception Report is produced by the Project Manager when the project is closed early.
- B.An Exception Plan is used to replace the Project Plan when the project exceeds its tolerances.
- ✓ C.The Project Manager sets tolerances for the Team Managers.
- D.Highlight Reports are produced by the Project Manager for the Project Board at stage end.
- ✓ E.The Project Board sets tolerances for the Project Manager.
Why C: Tolerances are set for each management level, and Exception Plans are created when tolerances are forecast to be exceeded.
Variation 3. Which TWO of the following are correct statements about tolerance in PRINCE2?
medium- ✓ A.The Project Board sets stage tolerances for the Project Manager
- ✓ B.If a stage tolerance is exceeded, the Project Manager must escalate
- C.Tolerances apply only to time and cost
- D.The Project Manager can never change tolerances without Board approval
- E.Tolerances are set only at project level
Why A: 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.
JA
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.