PRINCE2 PRINCE2 Foundation Exam (page: 16)
PRINCE2 Foundation 7 Edition
Updated on: 15-Feb-2026

Identify the missing words in the following sentence. A Project Manager agrees the [ ? ] with a Team Manager.

  1. project cost tolerance
  2. stage cost tolerance
  3. Work Package cost tolerance
  4. product cost tolerance

Answer(s): C

Explanation:

A Project Manager agrees on the Work Package cost tolerances with a Team Manager. This agreement defines the acceptable cost variance within which the Team Manager can operate without needing further approval.


Reference:

PRINCE2® Foundation official study materials.



Which is a true statement about time-driven controls?

  1. Time-driven controls are used for monitoring the progress of Work Packages and management stages
  2. Time-driven controls take place when specific events happen
  3. Time-driven controls are produced at the end of a stage
  4. An Exception Report is a time-driven control

Answer(s): A

Explanation:

Time-driven controls in PRINCE2® are specifically designed to monitor the progress of Work Packages and management stages at regular intervals. These controls ensure that the project stays on schedule and that any deviations are identified and managed promptly.


Reference:

PRINCE2® Foundation official study materials.



Which of the following statements about lines of authority and reporting are true?

1. The Project Manager has day-to-day control for a management stage within the limits laid down by the Project Board.

2. If a Team Manager forecasts a deviation beyond Work Package tolerances, this should be referred to the Project Manager.

  1. Only 1 is true
  2. Only 2 is true
  3. Both 1 and 2 are true
  4. Neither 1 or 2 are true

Answer(s): C

Explanation:

Both statements are true within the PRINCE2® framework. Statement 1 is accurate as the Project Manager does have day-to-day control within the limits set by the Project Board for a management stage. Statement 2 is also correct because if a Team Manager forecasts a deviation beyond Work Package tolerances, it should indeed be referred to the Project Manager.


Reference:

PRINCE2® Foundation official study materials.



What theme provides all management levels within the project management team with mechanisms for monitoring and control?

  1. Progress
  2. Change
  3. Organization
  4. Quality

Answer(s): A

Explanation:

The Progress theme in PRINCE2 provides all management levels within the project management team with mechanisms for monitoring and control. It involves tracking the ongoing viability of the plans and the project's objectives, and it includes mechanisms for reporting, reviewing, and ensuring that decisions on continued investment are based on accurate information.


Reference:

PRINCE2 Foundation manual, PRINCE2 official resources



Who should use the information in a Lessons Report to refine, change and improve the standards within a quality management system?

  1. Corporate group
  2. Project Board
  3. Project Assurance
  4. Executive

Answer(s): A

Explanation:

The information in a Lessons Report should be used by the corporate group to refine, change, and improve the standards within a quality management system. This approach ensures that insights and learnings gained from individual projects are integrated into organizational knowledge and contribute to continuous improvement across all projects.


Reference:

PRINCE2 Foundation manual, PRINCE2 official resources



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