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.

Question

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The Answer of 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.

Which of the Following Is True About Contingency Funds