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?
The appropriate way to fund the change involves utilizing the resources available within the project first. Since the stage 2 cost tolerance is available and the change budget has not been used, the most logical solution is to use £400 from the stage 2 cost tolerance and the £500 from the change budget to cover the £900 needed. This allows for existing allocated resources to be used effectively before requesting any additional funding.
First use the approved change budget and then ask for needed extra budget. Cost tolerance is not a budget.
Table 11.3 Tolerance should not be used to fund request for change.
B So in summary, the priority order for funding changes in PRINCE2 is: Use previous stage savings Use the change budget Request additional funding if needed This allows optimized use of available funding before needing new allocation. Savings get reused while the change budget is preserved for future needs.
Sorry, D is the correct answer
comment as per below.
I dont believe D is the correct answer. No budget for 'Tolerance' will be left if we go for option D. For me the correct one is C.