4.3.5 Describe the Guidance for Effective Management of Plans PRINCE2-FOUNDATION-VERSION-7 Practice Questions (Page 3)

Questions 11–15

1. 11expert · hard

   A project manager is developing the project plan for a new product launch. The organization has set a sustainability objective to reduce the carbon footprint of the product by 20% compared to the previous version. The project board is concerned that this objective may conflict with the cost and time constraints. According to PRINCE2, how should the project manager handle this?

   • APrioritize cost and time over sustainability, since they are the primary constraints.
   • BSet tolerances for the sustainability objective, such as a ±5% variance on the carbon footprint reduction, and manage it like other objectives.
   • CLeave the sustainability objective out of the plan and address it during execution.
   • DRemove the sustainability objective from the plan, as it conflicts with cost and time.
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2. 12application · medium

   A project board is setting tolerances for a stage plan. The project manager has been given a cost tolerance of ±10% and a time tolerance of ±5%. During the stage, the project manager forecasts that the stage will exceed the cost tolerance but remain within the time tolerance. What should the project manager do?

   • AEscalate the forecast to the project board as an exception, since the cost tolerance is likely to be breached.
   • BUse the time tolerance to offset the cost overrun and continue as planned.
   • CContinue with the stage and report the forecast at the next stage boundary.
   • DRevise the stage plan to reduce costs without informing the project board.
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4. 13expert · hard

   A project board is setting tolerances for a stage. The stage has a cost tolerance of ±10% and a sustainability tolerance of ±5% on the carbon footprint. The project manager forecasts that the stage will be 12% over budget but will meet the carbon footprint target. What should the project manager do?

   • AContinue with the stage, since the sustainability target is met.
   • BUse the sustainability tolerance to offset the cost overrun.
   • CEscalate the cost overrun to the project board, since it exceeds the cost tolerance.
   • DRevise the stage plan to reduce costs without informing the project board.
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5. 14foundation · easy

   What is the purpose of having an outline plan for later stages in a PRINCE2 project?

   • ATo provide a detailed work breakdown for those stages
   • BTo ensure that all work is fully specified before the project starts
   • CTo replace the need for a project plan
   • DTo give the project board a view of the future and a basis for approving the next stage
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6. 15foundation · easy

   Which of the following is the correct first step in PRINCE2's product-based planning approach?

   • AWriting the project product description
   • BWriting product descriptions for each product
   • CCreating the product breakdown structure
   • DCreating the product flow diagram
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