A Disadvantage of Contingency Funds Is

question 96

Multiple Choice

A disadvantage of contingency funds is:

• A)a recognition that the future contains both knowns and unknowns and the problems that might arise will impact the budget.
• B)it is difficult to ascertain across what project activities contingency funds should be applied.
• C)that application to the contingency fund gives an early warning signal of a potential overdrawn budget.
• D)that provision is made in the company plans for an increase in project cost.