Be wary of "test tolerances" - PPL, for example, says ±150 feet of nominated altitude.
Captain Examiner, however, would be more likely to growl at you for doing a negative G nose down to stay within ± 150', than he/she would if you did an immediate but smooth and gracefull cordinated descent from 200' high (provided you hadn't just climbed in to airspace that you shouldn't be in!!).
(Works for being too low, aslo - but hope I don't have to stress that).