In which step of the 'planning' technique should a team manager break down the cost of delivering a work package?

Breaking down the cost of delivering a work package is a core activity within the 'preparing estimates' step of the PRINCE2 'planning' technique. This step focuses on determining the required resources, effort, duration, and associated costs for the activities needed to create the products defined in the plan. Cost estimation is a fundamental part of this step, alongside estimating time and effort.

B. Defining and analyzing the products: This step focuses on identifying the required products and their details (product breakdown structure, product descriptions), which precedes estimation.
C. Organizing work packages: This is not a formal step in the PRINCE2 planning technique. Work packages are outputs of planning and are used to authorize work.
D. Preparing a schedule: This step involves sequencing activities and creating a timeline. It relies on the duration estimates prepared in the previous step but is not where cost is broken down.

AXELOS. (2023). Managing Successful Projects with PRINCE2 (7th ed.). TSO (The Stationery Office). Section 10.3.4, "Prepare estimates: Estimating involves deciding how much effort, what resources, what cost, and how long it will take to undertake a particular piece of work."

AXELOS. (2023). Managing Successful Projects with PRINCE2 (7th ed.). TSO (The Stationery Office). Figure 10.2, "Recommended approach to planning," shows 'Prepare estimates' as the fourth step, following product definition and preceding scheduling.