Question

During project charter creation there is typically a very general understanding of the project, so any budget included is approximate and should be called a preliminary budget with a corresponding confidence level for this estimate.

a) true
b) false

Answer 1

a) true

Step-by-step explanation:

When you are preparing a project, any budget that you make is only an approximate or estimated budget. Even when you are carrying on the project, the estimated costs might vary, hopefully the variances are favorable, but they can also be unfavorable. Depending on the type of project, a certain amount or percentage must be considered for unexpected incurred costs, also known as cost overruns.