Which of the following terms best describes the amount of funds needed above the estimate to reduce the risk of overruns?
A) reserve
B) insurance funds
C) project padding
D) discretionary funds

Question

Quizplus · Accepted Answer

A reserve is a term used to describe the amount of funds needed above the estimate to reduce the risk of overruns. It is a contingency amount set aside to cover unexpected costs or risks. This allows the project team to have a buffer to meet unforeseen expenses or to mitigate risks. Insurance funds, project padding, and discretionary funds are not necessarily set aside to reduce the risk of overruns.

Which of the Following Terms Best Describes the Amount of Funds