A Contingency Rate of 10% on a Building Project Budgeted

question 19

Multiple Choice

A contingency rate of 10% on a building project budgeted at $20 million means the project organization is hoping to bring the project in for around:

• A) $22 million.
• B) $2 million.
• C) $18 million.
• D) $200 million.

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Definitions:

Volume Variance

An assessment of the impact of production or sales volume differences on a company's revenue or expenses, relative to budgeted amounts.