A Contingency or Management Reserve to Pay for Additional Costs

question 49

Multiple Choice

A contingency or management reserve to pay for additional costs associated with implementing response plans should be

• A) absorbed as a cost of doing business.
• B) planned into the project prices and budgets.
• C) requested to be paid by the project sponsor in addition to the costs of doing the project.
• D) added to the budget of the next project with the same sponsor.

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Definitions:

Intrasender Role Conflict

A type of role conflict arising when an individual receives conflicting expectations or messages from a single source, leading to confusion or stress.

Corporate Headquarters

The main office or central administration location of a corporation where key managerial decisions are made.

Personnel Budget

Financial planning for the costs associated with staff, including salaries, benefits, training, and other employee-related expenses.

Task Interdependency

The degree to which tasks within an organization or project require collaboration and coordination among different individuals or teams.