The Probability That Funds Allocated to the Project Will Be

question 69

Multiple Choice

The probability that funds allocated to the project will be insufficient to complete it is:

• A) Technical risk.
• B) Cost estimate risk.
• C) Financing risk.
• D) Operating risk.

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Definitions:

Indirect Costs

Expenses that are not directly traceable to a specific product, project, or activity, often including utilities, rent, and administrative salaries.

Responsibility Centres

Sections or divisions of a business for which a manager has authority and responsibility, typically including revenue, expense, profit, and investment centers.

Seasonal

Relating to or dependent on a particular season or time of year, often affecting businesses, climate, or activities in a cyclical manner.

Cyclical

Characterized by or subject to cycles, often used to describe economic activities that fluctuate with the overall state of the economy.