In the situation where there are constant changes of equipment prices, fluctuation of foreign currency exchange, uncertain amount of equipment needed and limitation of budget, evaluate the needs for the inclusion of contingency reserve in a project. Justify your answer.

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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project management

Project costs management is defined as:
"The processes involved in planning, estimating, budgeting, and controlling costs so that the budget
can be completed within the approved budget"
1. In the situation where there are constant changes of equipment prices, fluctuation of foreign
currency exchange, uncertain amount of equipment needed and limitation of budget, evaluate the
needs for the inclusion of contingency reserve in a project. Justify your answer.
Transcribed Image Text:Project costs management is defined as: "The processes involved in planning, estimating, budgeting, and controlling costs so that the budget can be completed within the approved budget" 1. In the situation where there are constant changes of equipment prices, fluctuation of foreign currency exchange, uncertain amount of equipment needed and limitation of budget, evaluate the needs for the inclusion of contingency reserve in a project. Justify your answer.
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