Contingency Costs in the Project Costs Estimate, Also Referred to as ____

question 102

Multiple Choice

Contingency costs in the project costs estimate, also referred to as ____, are to cover unexpected situations that may come up during the project, such as items that may have been overlooked when the initial project scope was defined, activities that may have to be redone because they may not work the first time (redesigns) , or a high probability or high impact risk that may occur.

• A) auxiliary funds
• B) withholding
• C) reserves
• D) capital funds

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Definitions:

Post-closing Trial Balance

The trial balance prepared after closing entries have been posted to ensure that debits and credits still balance, marking the end of an accounting period.

Normal Balance

The side of an account (debit or credit) that is expected to increase; for assets and expenses, it’s debit; for liabilities, equity, and revenue, it's credit.

Financial Statement

A financial statement is a formal record of the financial activities and position of a business, person, or other entity.

Permanent/Temporary

Categories representing either enduring, long-term attributes or conditions, or those that are short-lived and transient.