Which of the Following Is True About Contingency Funds

question 37

Multiple Choice

Which of the following is true about contingency funds?

• A) Contingency funds are funds set aside by the client to address unforeseen events that cause the project costs to increase.
• B) Projects with a high risk profile will typically have a small contingency budget.
• C) Contingency is typically managed as multiple line items in the project budget.
• D) Allocating the contingency budget to the items in the budget that have low risk allows the project team to track the use of contingency against the risk plan.
• E) The availability of contingency funds in the line item budget may increase the use of contingency funds to solve problems rather than finding alternative solutions.

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