When processing freight invoices for a project, the project manager notices the shipping costs exceeded the budget due to increased fuel costs. The risk manager included this risk in the project's con

Question

Options

• AProcess the freight invoices at higher shipping costs against the project's contingency allowance.
• Bis not necessary, as the project budget already has a provision for this risk. Processing the
• CProcess the freight invoices for the budgeted amount and hope the shipping company will forgive
• DAsk the project sponsor to cover the additional shipping costs on the company's reserves account.

• A
  80% (28)
• B
  3% (1)
• C
  11% (4)
• D
  6% (2)

Explanation

The risk of increased fuel costs was already identified and included in the project's contingency allowance - meaning budget was explicitly reserved to cover this scenario. When a risk materializes and a contingency was set aside for it, the correct action is to process the invoices against that contingency allowance. Using unused budget from closed tasks would be an improper budget reallocation and bypasses the established risk management process. The contingency exists precisely for this purpose.

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