Question

Janet is forecasting how much money her department needs to support a new project. She estimates that two people and $25,000 in expenses will cover her needs. Because management typically insists on reducing forecasts by 20 percent, she increases her estimates to allow for that reduction. Which of the following factors is illustrated in this situation?
A. Padding estimates
B. Planning horizon
C. Project structure
D. People
E. Organization culture

Answer 1

Answer:

A. Padding estimates

Explanation:

According to my research on the answers provided for this question, I can say that based on the information provided within the question the factor being illustrated in this situation is Padding Estimates. This term refers to making the budget or estimate larger that what it is supposed to be in order to allow for last minute expenses or surprises.

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