Which level indicates that practices can vary based on project-specific characteristics?

The correct choice highlights that at Practice Group Level 2, organizations begin to standardize their practices while still allowing for variability based on the specific characteristics of projects. This level recognizes that different projects may have unique needs and contexts that can influence how practices are implemented.

At this stage, organizations have established basic practices and outcomes, but they remain flexible enough to tailor those practices to align with particular project requirements. The emphasis is on achieving key process areas while accommodating variations that may be necessary due to different project scopes, risks, environments, or technologies. This adaptability is crucial for effective project management, as it ensures that practices remain relevant and practical in diverse situations.

The other levels either reflect less maturity, where practices are more ad-hoc or not specifically defined (such as Level 1), or indicate a higher level of standardization and process improvement where variability is significantly reduced (as seen in Levels 3 and 4). Understanding this distinction helps practitioners recognize the importance of situational awareness in applying process practices effectively during project execution.