The firm set aside a little extra money just in case an unforeseen element of cost pushed the project beyond what they had budgeted.This extra money is called:
A)a rainy day fund.
B)a contingency reserve.
C)an escalation clause.
D)a sinking fund.

Question

Quizplus · Accepted Answer

The term for a little extra money set aside for unforeseen costs is a contingency reserve. A rainy day fund is generally used for emergencies unrelated to specific projects, an escalation clause is a contractual provision that increases the price of a project under certain conditions, and a sinking fund is typically used for long-term savings or debt repayment.

The Firm Set Aside a Little Extra Money Just in Case