The Health and Safety Training Project is part of a programme of strategic expansion, which is important for ABC Company’s continued operation. At the end of stage 2, the estimated project costs are greater than the expected benefits in the business case. The project board has reviewed the situation and asked programme management to decide whether the project should be closed prematurely. Is this an appropriate application of the ‘manage by stages’ principle, and why?

The Health and Safety Training Project is part of a programme of strategic expansion, which is important for ABC Company’s continued operation. At the end of stage 2, the estimated project costs are greater than the expected benefits in the business case. The project board has reviewed the situation and asked programme management to decide whether the project should be closed prematurely. Is this an appropriate application of the ‘manage by stages’ principle, and why?
A . Yes, because decisions about closure should be escalated to programme management, unless otherwise instructed.
B . Yes, because the project board should escalate significant decisions to programme management.
C . No, because this contradicts the ‘manage by exception’ principle.
D . No, because the project board should decide whether to continue with the project.

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Answer: D