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In Business / College | 2025-07-03

What does a "contingency" in an estimate represent?
A. Unexpected direct costs
B. Funding for labor costs
C. Allowances for uncertainties and risks
D. Costs that are unnecessary but included as protection

Asked by Ziberydo

Answer (2)

A "contingency" in an estimate represents allowances for uncertainties and risks during a project. It is essential for managing unexpected costs that may arise. Such funds play a critical role in ensuring a project stays on budget despite unforeseen challenges. ;

Answered by GinnyAnswer | 2025-07-03

A "contingency" in an estimate stands for allowances for uncertainties and risks in a project budget. It helps prepare for unexpected costs that could disrupt financial planning. The correct answer is C: Allowances for uncertainties and risks.
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Answered by Anonymous | 2025-07-04

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