Full PRINCE2-Practitioner Practice Test and 285 unique questions with explanations waiting just for you!
PRINCE2 Certification Dumps PRINCE2-Practitioner Exam for Full Questions - Exam Study Guide
NEW QUESTION 74
All the products that are due in stage 3 have been completed, apart from the 'updated corporate quality procedures'. The work has been completed but the product has not yet been approved. The executive has been told that it will be signed off before the end of the project. In response to an exception report, the executive has instructed the project manager to plan to obtain approval of the product in stage 4.
Is this appropriate application of the report management stage end' activity, and why?
- A. No, because approval of the products was planned for stage 3 and must be completed before the stage ends.
- B. Yes, because the completion of the product in the next stage is a follow-on action recommendation for stage 4.
- C. Yes, because approval of the product can be carried forward into the next stage, with authority from the project board.
- D. No, because a project-level exception plan is required before approval of the quality procedures can be delayed.
Answer: C
Explanation:
Explanation/Reference:
NEW QUESTION 75
Scenario
A photographer from Portraits Ltd, a professional photographic company, has taken on the role of Team Manager after taking some time to understand the requirements of the project. A contract for their services has been set up and is being monitored by the Purchasing Manager and a Work Package has been agreed. This contract specifies that the photographer must arrange a meeting with the Engineering Manager to establish a schedule for the photo sessions to minimize the impact on the Engineering staff. This meeting should have occurred by now.
The Engineering Manager was made aware of this requirement but when asked he reported that he has received no communication from the photographer. The Project Manager has tried to call the photographer and has had no response. The Project Manager believes there is a risk that Portraits Ltd are overbooking work and prioritizing other clients' work. If Portraits ltd do not deliver on schedule the project will be delayed and the expected benefits will be reduced.
The contract is to be reviewed and Portraits Ltd reminded of their agreement.
The project is now in stage 2. The Project Manager has heard about the possibility of a competitor also producing a calendar to be delivered earlier than the target date for this project. There is a threat that the early release of a competitor's calendar may weaken the impact of the MNO Manufacturing Company calendar, thereby reducing the anticipated benefits of the Calendar project.
Column 1 contains a number of risk responses identified by the Project Manager following an assessment of this risk. Column 2 contains a list of threat response types. For each risk response in Column 1, select from Column 2 the type of response it represents. Each option from Column 2 can be used once, more than once or not at all.
Column 1 contains a number of possible risk responses to the above risk. For each risk response, select from Column 2 the appropriate risk threat response type that it represents. Each selection from Column 2 can be used once, more than once or not at all.
Answer:
Explanation:
Explanation
1 - Accept
2 - Fallback
3 - Share
4 - Accept
5 - Fallback
6 - Avoid
NEW QUESTION 76
The project is approaching the end of stage 3, and stage 4 is being planned as part of the 'managing a stage boundary' process.
Which action should the project manager carry out as part of the 'update the project plan' activity?
- A. Include the tolerances for the work package 'delivered pilot courses' in the project plan.
- B. Ensure that the team manager for the work package 'delivered pilot courses' is included as a resource.
- C. Include the actual time and cost of the work to prepare the 'marketing materials' in the project plan.
- D. Update the project's business case to show any new key risks that have been identified.
Answer: C
Explanation:
Explanation
Reference https://www.prince2primer.com/prince2-2017-update-project-plan-business-case/
NEW QUESTION 77
Which of the following statements is TRUE with regard to expected benefits?
- A. Tolerances cannot be set against expected benefits
- B. They should be measurable
- C. They don't need to follow corporate objectives
- D. They cannot be assigned
Answer: B
NEW QUESTION 78
Although it is not specified in the current corporate branding standards, the MFH corporate logo should be shown on the front page of the service level agreement.
- A. Obtain agreement from the Director of Facilities Division to amend this within the remaining +2 days tolerance.
- B. Raise an issue (request for change).
- C. Raise an issue (off-specification).
- D. Accept this error as a concession.
Answer: B
Explanation:
Explanation/Reference:
NEW QUESTION 79
A change authority has been appointed for the project. During the development of the 'classroom-based training material', a large number of changes were proposed to the design of the 'e-learning course'. Therefore, the change authority has decided to use the Moscow technique to prioritize changes based on the impact they will have on completing each stage on time.
Is this an appropriate application of the Moscow technique, and why?
- A. No, because it should be used to prioritize change based on the project's business justification.
- B. Yes, because it should be used to prioritize change based on the estimated impact on time.
- C. Yes, because it is a prioritization technique that should be used to prioritize a product's quality criteria.
- D. No, because it should define scope tolerances, supporting the management by exception principle.
Answer: B
Explanation:
Explanation/Reference: https://en.wikipedia.org/wiki/MoSCoW_method
NEW QUESTION 80
Scenario
A central government department, the Ministry of Food Hygiene (MFH), faces increasing pressure to cut costs, better manage suppliers' performance and reduce the confusion caused by inadequate internal controls, outdated standards and outdated technology. External consultants were employed to conduct a feasibility study to identify options to address the problems, and the likely costs and benefits. The following options were considered:
Do nothing.
Re-engineer selected business functions.
Outsource selected business functions.
The feasibility study concluded that there was a case for outsourcing the MFH Information Technology
Division and the Facilities Division (maintenance of buildings and grounds). The recommendations were:
One service provider should be contracted to provide the services currently provided by the
Information Technology Division and the Facilities Division.
A 10-year service contract should be agreed with the selected service provider.
The feasibility study developed high-level designs of the current organization, processes, systems and
operating models, plus an outline Business Case for the required project. The external consultants
also made the following recommendations for the management of the project:
Use PRINCE2.
Set up the project with 4 management stages:
Stage 1. Standard PRINCE2 initiation activities.
Stage 2. Create detailed designs (future organization, processes, systems and operating
models) and the service level agreement between MFH and the future service
provider.
Stage 3. Request and evaluate proposals, select service provider and agree contract.
Stage 4. Transfer equipment and staff, transfer responsibility for service provision and run
trial period.
Initial estimates indicated that the project would cost (GBP)2.5m and take two years to complete.
MFH senior management agreed that there was a case for outsourcing, and accepted the
recommendations as a basis for the project. There is an expected saving of (GBP)20m over 10 years.
The Outsourcing project has completed the Starting up a Project process and is now in the initiation stage. Because of the strategic importance of the project, the MFH Chief Executive Officer has taken the role of Executive. A PRINCE2-experienced Project Manager has been appointed from within MFH. Staff within the business functions being outsourced will work with the external consultants who conducted the feasibility study to define the detailed designs.
Which 2 statements should be recorded under the Expected benefits heading?
- A. The confirmed cost of the Outsourcing project is (GBP)2.5m, but with considerable savings over 10 years.
- B. The total expected savings over 10 years, at current prices, is (GBP)20m.
- C. The 10-year outsourcing contract, at current prices, will be worth (GBP)80m.
- D. Outsourcing would allow MFH to take advantage of the best services the outsourcing industry has to offer.
- E. The 10-year outsourcing contract will enable MFH to stabilize costs at agreed levels.
Answer: B,E
Explanation:
Reference: http://www.whatisprince2.net/prince2-theme-business-case.php
NEW QUESTION 81
Scenario
Additional Information
Product Description
Quality notes from the Daily Log
The Director of Information Technology Division (DIT) has been asked to ensure that any changes to the outsourced staff employment contracts adhere to employment law. The DIT will review future job descriptions of the transferred staff before the final contract is signed with the selected service provider.
The service level agreement between MFH and the selected service provider will specify the type and quality of service required. The selected service provider must follow the industry standards for providing outsourced services.
MFH has a quality management system which contains a document control procedure for all its documentation, however this does not include change management.
All project documents will be subject to a quality review. Nominated products will require a formal approval record signed-off by the quality review chair.
Extract from the draft Quality Management Strategy (may contain errors) Introduction
1. This document defines the approach to be taken to achieve the required quality levels during the project.
2. The Project Board will have overall responsibility for the Quality Management Strategy.
3. Project Assurance will provide assurance on the implementation of the Quality Management Strategy.
Quality management procedure - Quality standards
4. The selected service provider will operate to industry standards for providing outsourced services.
5. MFH document standards will be used.
Records
6. A Quality Register will be maintained to record the planned quality events and the actual results from the quality activities.
7. Configuration Item Records will be maintained for each product to describe its status, version and variant.
8. Approval records for products that require them will be stored in the quality database.
Roles and responsibilities
9. The DIT will check that the employment contracts for outsourced staff adhere to employment law.
10. Team Managers will provide details of quality checks that have been carried out.
11. Team Managers will ensure that the Quality Register is updated with the names of team members who are involved in the review process.
12. The Senior User will review the Product Descriptions of the products to be produced by the selected service provider to ensure that they can be achieved.
Which statement applies to the Roles and responsibilities section?
- A. Delete entry 10 because this is the responsibility of the quality review chair.
- B. Amend entry 12 because this is the responsibility of supplier assurance.
- C. Delete entry 9 because this should only be recorded in the Product Description.
- D. Delete entry 11 because only the Project Manager can update the Quality Register.
Answer: B
NEW QUESTION 82
Scenario
Additional Information
Extract from the Communication Management Strategy.
The project information in the table below is true, but it may not be recorded under the correct heading or be in the correct document.
Using the Project Scenario, select the appropriate response to each of the following 5 questions which have been raised by the Project Board.
The project is now at the end of the initiation stage. Having decided that the Calendar project is a relatively simple project, the Project Manager combined the Starting Up a Project process and the Initiating a Project process. No Project Brief has been produced. Instead the Project Manager used the project mandate to produce a simple Project Initiation Documentation (PlO). The PlO includes the Business Case, a product checklist and several Product Descriptions, Including the Project Product Description. Short sections are also included for each of the strategies and the controls to be applied. The Project Manager has elected to use the Daily Log to record all risks, issues, lessons and quality - results.
After the initiation stage there will be two further stages during which a small number of Work Packages will be authorized. While these are being managed, the Project Manager will hold regular checkpoints, which will support the production of weekly Highlight Reports to the Project Board.
This question provides a number of changes which may or may not be required to the Extract from the Communication Management Strategy provided in the additional information.
Which statement applies to the Tools and techniques section?
- A. Delete entry 5 because the customers are not within the scope of this project.
- B. Move entry 4 to Reporting because this describes a report on the performance of the Communication procedures used.
- C. Delete entry 3 because the activities required to create the products should be documented in the relevant plan(s).
Answer: B
NEW QUESTION 83
Additional Information Product Description
Quality notes from the Daily Log
The Director of Information Technology Division (DIT) has been asked to ensure that any changes to the outsourced staff employment contracts adhere to employment law. The DIT will review future job descriptions of the transferred staff before the final contract is signed with the selected service provider.
The service level agreement between MFH and the selected service provider will specify the type and quality of service required. The selected service provider must follow the industry standards for providing outsourced services.
MFH has a quality management system which contains a document control procedure for all its documentation, however this does not include change management.
All project documents will be subject to a quality review. Nominated products will require a
formal approval record signed-off by the quality review chair.
Extract from the draft Quality Management Strategy (may contain errors)
Introduction
1.This document defines the approach to be taken to achieve the required quality levels during the project.
2.The Project Board will have overall responsibility for the Quality Management Strategy.
3.Project Assurance will provide assurance on the implementation of the Quality Management Strategy.
Quality management procedure - Quality standards
4.The selected service provider will operate to industry standards for providing outsourced services.
5.MFH document standards will be used.
Records
6.A Quality Register will be maintained to record the planned quality events and the actual results from the quality activities.
7.Configuration Item Records will be maintained for each product to describe its status, version and variant.
8.Approval records for products that require them will be stored in the quality database. Roles and responsibilities
9.The DIT will check that the employment contracts for outsourced staff adhere to employment law.
10.
Team Managers will provide details of quality checks that have been carried out.
11.
Team Managers will ensure that the Quality Register is updated with the names of team members who are involved in the review process.
12.
The Senior User will review the Product Descriptions of the products to be produced by the selected service provider to ensure that they can be achieved.
The service level agreement contains a number of technical terms that are missing from its glossary of terms.
- A. Obtain agreement from the Director of Facilities Division to add these into the glossary of terms within the remaining +2 days tolerance.
- B. Raise an issue (off-specification).
- C. No action required.
- D. Raise an issue (request for change).
Answer: A
NEW QUESTION 84
Which of the following represents the four key characteristics a good Project board should display?
- A. Authority, Credibility, Delegation, Availability
- B. Authority, Credibility, Connections, Delegation
- C. Authority, Availability, Connections, Delegation
- D. Authority, Credibility, Commitment, Availability
Answer: A
NEW QUESTION 85
In order for ABC Company to achieve the expected sales of the health and safety training course, the senior user will need to ensure that all staff understand the objectives and target audience for the course.
In addition, these sales will need to be added to each individual's sales targets. These activities have been included in the benefits management approach.
Is this appropriate, and why?
- A. Yes, because the actions required to achieve the outcomes need to be documented.
- B. Yes, because how the benefits will be measured needs to be documented.
- C. No, because actions to deliver the outputs should be recorded in the stage plan.
- D. No, because the expected sales increase should be recorded in the business case.
Answer: B
NEW QUESTION 86
The project board has asked for highlight reports every six weeks during stage 3. As a result, the project manager has asked each team manager for checkpoint reports every six weeks, in order to collate these into the highlight report. The team manager for the 'marketed courses' is new to team management.
Is this an appropriate action as part of the 'controlling a stage' process, and why?
- A. Yes, because checkpoint reports are a time-driven control providing progress information.
- B. No, because the project board should decide on the frequency and content of progress reporting.
- C. Yes, because the project board will need to be updated with the progress of every team.
- D. No, because the frequency of reporting should reflect the level of control required for the work package.
Answer: A
NEW QUESTION 87
Project Scenario - Health and Safety Training Project:
ABC Company is a well-established training company that uses a standard model to develop training materials and deliver courses to customers.
ABC Company has commissioned a project in response to recent changes in government legislation relating to health and safety on construction sites. The project will deliver "capability to provide health and safety training", including the materials needed for classroom-based training and e-learning. The expected benefits for construction companies include a reduction in lost days and legal costs due to accidents.
The e-learning course will be developed by a specialist external consultancy. The materials for classroom-based training will be delivered by ABC Company's development team. All course materials will be piloted before they are used. ABC Company will deliver training to its customers and also hopes to sell the course materials to other training companies as part of their operational business. ABC Company will use their own sales and marketing departments to promote the courses.
The legislation requires construction companies to comply with the new legislation within two years. The course materials and trainers have to be accredited by a government agency before courses can be delivered.
ABC Company is planning to deliver pilot courses within five months of starting the project.
The ABC Company standard development model for new courses recommends the following stages:
End of the Project scenario.
Additional Information:
The Chief Executive Officer (CEO) founded the company five years ago. Under her leadership, ABC Company has grown quickly into a successful training company. It delivers a range of accredited professional training.
The Finance Director is also a founder member of ABC Company and is responsible for authorizing budgets for the Operations and Development Teams. She authorizes all large contracts personally.
The Purchasing Manager reports to the Finance Director and is responsible for managing and monitoring supplier contracts.
The Operations Director is responsible for the delivery off all training and for the training development budget. His department organizes courses, venues and trainers. They work with the Product and the Sales teams to provide a comprehensive training schedule. ABC Company's IT manager reports to the Operations Director.
The Business Development Director has recently been appointed to identify new training needs and propose new products. She will work with the Operations. Director to ensure a cost-conscious approach and that appropriate development technologies are used for the health and safety course.
The Training Development Manager reports to the Business Development Director and is responsible for developing training materials and gaining accreditation, in accordance with the standard course development model. Course developers in his team have skills in a range of development technologies and are allocated to projects as needed.
The Training Delivery Manager, who reports to the Operations Director, is responsible for ensuring that internal and external trainers deliver ABC Company training courses to the required standard. He also checks course materials to ensure they are fit for purpose and of the required quality.
The Central Services Director has responsibility for corporate communications, facilities management and configuration management. He recently led a project to consolidate all company quality systems into one quality management system and set up a corporate quality department, now managed by the Corporate Quality Manager.
The Corporate Document Manager reports to the Central Services Director. She helped establish the company's document management system and now operates it across the business. She manages a team of administrators and contracts staff when workload is high.
The Sales Director joined ABC Company two months ago and is keen to establish himself by suggesting new markets for the courses and material. All account managers and the marketing team report to him. They promote existing training courses to other training companies and existing customers.
End of the additional information.
The project is at the end of stage 4. The project manager has changed the benefits management approach. It now includes all the activities necessary to measure the increased revenue.
Who should approve this update?
- A. Corporate management
- B. Project manager
- C. Project board
- D. Project assurance
Answer: C
NEW QUESTION 88
Project Scenario - Health and Safety Training Project:
ABC Company is a well-established training company that uses a standard model to develop training materials and deliver courses to customers.
ABC Company has commissioned a project in response to recent changes in government legislation relating to health and safety on construction sites. The project will deliver "capability to provide health and safety training", including the materials needed for classroom-based training and e-learning. The expected benefits for construction companies include a reduction in lost days and legal costs due to accidents.
The e-learning course will be developed by a specialist external consultancy. The materials for classroom-based training will be delivered by ABC Company's development team. All course materials will be piloted before they are used. ABC Company will deliver training to its customers and also hopes to sell the course materials to other training companies as part of their operational business. ABC Company will use their own sales and marketing departments to promote the courses.
The legislation requires construction companies to comply with the new legislation within two years. The course materials and trainers have to be accredited by a government agency before courses can be delivered.
ABC Company is planning to deliver pilot courses within five months of starting the project.
The ABC Company standard development model for new courses recommends the following stages:
End of the Project scenario.
Additional Information:
The Chief Executive Officer (CEO) founded the company five years ago. Under her leadership, ABC Company has grown quickly into a successful training company. It delivers a range of accredited professional training.
The Finance Director is also a founder member of ABC Company and is responsible for authorizing budgets for the Operations and Development Teams. She authorizes all large contracts personally.
The Purchasing Manager reports to the Finance Director and is responsible for managing and monitoring supplier contracts.
The Operations Director is responsible for the delivery off all training and for the training development budget. His department organizes courses, venues and trainers. They work with the Product and the Sales teams to provide a comprehensive training schedule. ABC Company's IT manager reports to the Operations Director.
The Business Development Director has recently been appointed to identify new training needs and propose new products. She will work with the Operations. Director to ensure a cost-conscious approach and that appropriate development technologies are used for the health and safety course.
The Training Development Manager reports to the Business Development Director and is responsible for developing training materials and gaining accreditation, in accordance with the standard course development model. Course developers in his team have skills in a range of development technologies and are allocated to projects as needed.
The Training Delivery Manager, who reports to the Operations Director, is responsible for ensuring that internal and external trainers deliver ABC Company training courses to the required standard. He also checks course materials to ensure they are fit for purpose and of the required quality.
The Central Services Director has responsibility for corporate communications, facilities management and configuration management. He recently led a project to consolidate all company quality systems into one quality management system and set up a corporate quality department, now managed by the Corporate Quality Manager.
The Corporate Document Manager reports to the Central Services Director. She helped establish the company's document management system and now operates it across the business. She manages a team of administrators and contracts staff when workload is high.
The Sales Director joined ABC Company two months ago and is keen to establish himself by suggesting new markets for the courses and material. All account managers and the marketing team report to him. They promote existing training courses to other training companies and existing customers.
End of the additional information.
The project is in stage 2. The project manager is reviewing stage status and has collected the checkpoint reports from the team managers. These show that the products are being completed on schedule. However, project support has raised issues that quality reviews have not been completed as agreed. The project manager reports in the highlight report that the stage is progressing well.
Is this appropriate, and why?
- A. No, because the issues raised by project support are a cause for concern and should be reflected in the highlight report.
- B. No, because the project manager should have recorded the cause of the delay to the quality reviews in the lessons log.
- C. Yes, because the highlight report is used to provide the project board with stage and project progress.
- D. Yes, because the highlight report is a summary of the information in the checkpoint reports.
Answer: A
NEW QUESTION 89
HOTSPOT
A photographer from Portraits Ltd, a professional photographic company, has taken on the role of Team Manager after taking some time to understand the requirements of the project. A contract for their services has been set up and is being monitored by the Purchasing Manager and a Work Package has been agreed. This contract specifies that the photographer must arrange a meeting with the Engineering Manager to establish a schedule for the photo sessions to minimize the impact on the Engineering staff. This meeting should have occurred by now.
The Engineering Manager was made aware of this requirement but when asked he reported that he has received no communication from the photographer. The Project Manager has tried to call the photographer and has had no response. The Project Manager believes there is a risk that Portraits Ltd are overbooking work and prioritizing other clients' work. If Portraits ltd do not deliver on schedule the project will be delayed and the expected benefits will be reduced.
The contract is to be reviewed and Portraits Ltd reminded of their agreement.
Answer:
Explanation:
NEW QUESTION 90
Scenario
Extract from the Project Product Description (with errors)
Which 2 statements apply to the Derivation section?
- A. Add 'Professional photographer'.
- B. Move entry 12 to Composition, because this is within the scope of this project.
- C. Move entry 9 to Composition because this is within the scope of the project.
- D. Delete entry 10 because this is NOT a source product for this project.
- E. Delete entry 11 as this is already correctly shown under Development Skills required.
Answer: B,E
NEW QUESTION 91
Project Scenario - Health and Safety Training Project:
ABC Company is a well-established training company that uses a standard model to develop training materials and deliver courses to customers.
ABC Company has commissioned a project in response to recent changes in government legislation relating to health and safety on construction sites. The project will deliver "capability to provide health and safety training", including the materials needed for classroom-based training and e-learning. The expected benefits for construction companies include a reduction in lost days and legal costs due to accidents.
The e-learning course will be developed by a specialist external consultancy. The materials for classroom-based training will be delivered by ABC Company's development team. All course materials will be piloted before they are used. ABC Company will deliver training to its customers and also hopes to sell the course materials to other training companies as part of their operational business. ABC Company will use their own sales and marketing departments to promote the courses.
The legislation requires construction companies to comply with the new legislation within two years. The course materials and trainers have to be accredited by a government agency before courses can be delivered.
ABC Company is planning to deliver pilot courses within five months of starting the project.
The ABC Company standard development model for new courses recommends the following stages:
End of the Project scenario.
Additional Information:
The Chief Executive Officer (CEO) founded the company five years ago. Under her leadership, ABC Company has grown quickly into a successful training company. It delivers a range of accredited professional training.
The Finance Director is also a founder member of ABC Company and is responsible for authorizing budgets for the Operations and Development Teams. She authorizes all large contracts personally.
The Purchasing Manager reports to the Finance Director and is responsible for managing and monitoring supplier contracts.
The Operations Director is responsible for the delivery off all training and for the training development budget. His department organizes courses, venues and trainers. They work with the Product and the Sales teams to provide a comprehensive training schedule. ABC Company's IT manager reports to the Operations Director.
The Business Development Director has recently been appointed to identify new training needs and propose new products. She will work with the Operations. Director to ensure a cost-conscious approach and that appropriate development technologies are used for the health and safety course.
The Training Development Manager reports to the Business Development Director and is responsible for developing training materials and gaining accreditation, in accordance with the standard course development model. Course developers in his team have skills in a range of development technologies and are allocated to projects as needed.
The Training Delivery Manager, who reports to the Operations Director, is responsible for ensuring that internal and external trainers deliver ABC Company training courses to the required standard. He also checks course materials to ensure they are fit for purpose and of the required quality.
The Central Services Director has responsibility for corporate communications, facilities management and configuration management. He recently led a project to consolidate all company quality systems into one quality management system and set up a corporate quality department, now managed by the Corporate Quality Manager.
The Corporate Document Manager reports to the Central Services Director. She helped establish the company's document management system and now operates it across the business. She manages a team of administrators and contracts staff when workload is high.
The Sales Director joined ABC Company two months ago and is keen to establish himself by suggesting new markets for the courses and material. All account managers and the marketing team report to him. They promote existing training courses to other training companies and existing customers.
End of the additional information.
CHANGE
A request has been received from a user to add the function to pay by credit card to the 'amended course booking procedures' for the 'e-learning course'. The user has suggested that sales of the course will be reduced if this change is not implemented.
Here are three actions relating to this request for change.
Which role (A-E) should carry out each action?
Choose only one role for each action. Each role can be used once, more than once, or not at all.
Answer:
Explanation:
Explanation
NEW QUESTION 92
Scenario
Additional Information
During the initiation stage the Project Manager met with the Marketing Director to find out more about the requirements of the promotional calendar and recorded the following notes:
There has been a reduction in the order numbers at the MNO Manufacturing due in part to the increased marketing activities of its competitors. 10% of customers have not re-ordered in this financial year and staff morale is poor. A number of skilled staff have left as a result and replacement staff have not been recruited due to the reduced operation. If the project is successful, a recruitment campaign will be required to fill the existing staff vacancies and there may be a requirement for additional staff. Operational costs are likely to increase because skilled staff are expensive and difficult to find.
In financial terms, there were a total of 1,500 orders in the last financial year, each with an average profit of (GBP)2k. The Marketing department believes that sending a promotional calendar to our current and prospective customers would increase orders by at least 10% with a minimum of 10 further orders from the list of prospective customers within 12 months from the date of distribution.
The Marketing Director will be funding the project from the business marketing budget. She believes that the effect of a good company image portrayed by a successful calendar would last into a second year. She has forecast the same increase in orders for a second year and predicts that the annual employee satisfaction survey will show a measurable improvement in staff morale.
A number of alternatives were explored, including:
20% discount for all repeat customers - not cost-effective and very short term A promotional calendar as a free Christmas gift - would target current and prospective customers and the benefits would last into a second year A series of television and press advertisements* was too expensive A direct mail shot to all customers - benefit would be short term
-- --
- Creation of an internet website - would not suit all customers
The calendar is seen as the favored option, as long as the company's competitors do not increase their marketing activity. Whilst the Marketing department wants a very high quality, glossy product, the project management team must be aware of the cost this will incur.
Which 2 statements should be recorded under the Timescale heading?
- A. The print company requires a 2 week notification period of the calendar pack delivery.
- B. The prepared calendar pack must be delivered by the first week in December.
- C. Additional 10% increase in orders in year two.
- D. Benefits will be lost if the project is not completed on time.
- E. A recruitment campaign to fill the existing staff vacancies will need to take place in the next 12 months.
Answer: B,C
NEW QUESTION 93
Checkpoint reports are being produced monthly. A week after the last checkpoint report was prepared, the team responsible for developing the 'classroom-based training materials' have realized that they will not be able to deliver the materials to the accreditor by the work package completion deadline.
Which action demonstrates application of the 'manage by exception' principle?
- A. The team manager immediately reports the issue to the project manager.
- B. The team manager reports the issue in the next checkpoint report.
- C. The team manager raises a risk that the deadline may be missed.
- D. The team manager immediately produces an exception plan to replace the current plan.
Answer: A
Explanation:
Explanation/Reference: http://prince2.wiki/Manage_by_exception
NEW QUESTION 94
This question provides a number of changes which may or may not be required to the Extract from the Communication Management Strategy provided in the additional information.
Which statement applies to the Introduction section?
- A. No change to entry 1 because this shows the purpose and content of this document.
- B. Amend entry 1 to read 'This document contains the controls and reporting to be established for the project management team'.
- C. Amend entry 1 to read 'This document contains the means and frequency of communication between the project management team, the print company and other external parties.
Answer: A
Explanation:
Explanation/Reference:
NEW QUESTION 95
Which product should show that the project has been closed prematurely and has not achieved the objectives defined in the Project Initiation Documentation (PID)?
- A. End Project Report
- B. Project closure notification
- C. Benefits Review Plan
- D. Exception Report
Answer: A
NEW QUESTION 96
......
Authentic Best resources for PRINCE2-Practitioner Online Practice Exam: https://www.prep4king.com/PRINCE2-Practitioner-exam-prep-material.html
Get the superior quality PRINCE2-Practitioner Dumps Questions from Prep4King: https://drive.google.com/open?id=1nX2HH0nP15S0_fDsqEnwqTcAPO7zku4b
