PMP (Project Management Professional) · Question
What is the primary purpose of a contingency reserve in project cost management?
Contingency reserves are allocated for identified risks (known-unknowns) that have been planned for in the risk register.
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Question: What is the primary purpose of a contingency reserve in project cost management?
Answer options:
- To address unforeseen risk events ✅ To cover known-unknown risks
- To fund management-approved changes
- To accommodate scope creep
Correct answer: To cover known-unknown risks
Explanation: Contingency reserves are allocated for identified risks (known-unknowns) that have been planned for in the risk register.
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Question explanations
- What is the primary output of the 'Direct and Manage Project Work' process?
- Which project management approach emphasizes frequent communication, self-organizing teams, and adapting to ch
- Which of the following is an output of the 'Develop Project Charter' process?
- Which type of risk response strategy involves shifting the impact of a threat along with ownership to a third
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