During the initiation stage, the executive decided to appoint a change authority because a large number of small changes were expected. The executive wanted to restrict the cost of any single change that the change authority will be allowed to authorize. As a result, the change authority will only be allowed to authorize requests for change that require no more than 2 days of effort with the associated cost.
Is this an appropriate action, and why?
It is appropriate to limit the cost of any single change that the change authority is allowed to authorize. This helps ensure that the project stays within its overall change budget and maintains good control over small changes. Setting such limits is typically expected in managing change budgets effectively.
In PRINCE2, it is appropriate for the executive to place limits on the authority of the change authority when it is set up. This helps control the change budget. Applying a limit that the change authority can only authorize changes up to 2 days effort/associated cost is a reasonable control. B is incorrect as the change budget overall is separate from change limits. C is incorrect as the project board can delegate authority to the change authority. D is incorrect as cost tolerance is not for funding small changes. Therefore, A is the best answer - setting a change limit is appropriate when establishing the change authority to stay within the overall change budget.