A Disadvantage of Contingency Funds Is

question 91

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.

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Definitions:

Sensitivity Selector

A feature on a device that allows the user to adjust the level of sensitivity, often found in medical diagnostic equipment to enhance accuracy.

Paper Speed

The rate at which paper feeds through a device like a printer or an electrocardiogram (ECG) machine, affecting the output's scale or duration.

Electrocardiogram

A test that records the electrical activity of the heart to detect heart problems and monitor the heart's status.

Room Preparation

The process of arranging and setting up a room for a specific purpose or event, which can include cleaning, organizing, and equipping the space with necessary items.