Which PRINCE2 Principle Is Supported by the Setting of Tolerances

question 22

Multiple Choice

Which PRINCE2 principle is supported by the setting of tolerances for the three levels of plan?

• A) Manage by stages
• B) Manage by exception
• C) Continued business justification
• D) Learn from experience

Understand the concept of activity-based costing and how it differs from traditional costing systems.

Calculate predetermined overhead rates based on different bases (machine-hours, direct labor-hours, capacity).

Identify unused capacity cost and its implications on financial statements.

Analyze the effect of overhead allocation on product costs and pricing strategies.

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Definitions:

Non-Core Activities

Tasks or processes that are not essential to the primary business or mission of an organization.

Dependent

Being influenced or determined by others or needing someone or something for support, help, or sustenance.

Outsiders

Individuals or entities that are not part of a specific group, organization, community, or system, often lacking certain privileges or access.

Ambidextrous Organization

An organization that can simultaneously exploit current competencies and explore emerging opportunities.