Discover the correct approach to funding scope changes in PRINCE2 projects. Learn how to utilize stage cost tolerances and change budgets to effectively manage project modifications.
Table of Contents
Question
The Sales Director would like to add a new company logo to the ‘marketing material’. The change to the project scope has been approved by the project board. It is expected to delay product and stage completion date by 3 days and cost ֲ£900. The stage 2 cost tolerance of +ֲ£1,000 has not been used. The change budget of ֲ£500 has not been used.
Which option describes how this change should be funded?
A. ֲ£400 of the stage 2 cost tolerance and the ֲ£500 change budget should be used.
B. ֲ£900 needed for the change should be taken from the stage 2 cost tolerance.
C. ֲ£900 of additional funding will need to be requested to pay for the change.
D. ֲ£400 will need to be requested in addition to the ֲ£500 change budget.
Answer
B. ֲ£900 needed for the change should be taken from the stage 2 cost tolerance.
Explanation
In PRINCE2, when a change to the project scope is approved by the project board, the funding for the change should first come from the available stage cost tolerance. If the stage cost tolerance is insufficient, then the change budget can be utilized.
In this scenario, the change is expected to cost ֲ£900, and the stage 2 cost tolerance of +ֲ£1,000 has not been used. Since the stage cost tolerance is sufficient to cover the entire cost of the change, the ֲ£900 should be taken from the stage 2 cost tolerance.
The change budget of ֲ£500 should not be used in this case, as it is only utilized when the stage cost tolerance is insufficient. Additionally, requesting additional funding is not necessary since the existing stage cost tolerance can fully accommodate the change.
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