The customer responsible for overseeing your project asks you to provide a written cost estimate that is 30 percent higher than your estimate of the project's cost. He explains that the budgeting process requires managers to estimate pessimistically to ensure enough money is allocated for projects. What is the BEST way to handle this?
A. Add to 30 percent as a lump sum contingency fund to handle project risks.
B. Add the 30 percent to your cost estimate by spreading it evenly across all project activities.
C. Create one cost baseline for budget allocations and a second one for the actual project.
D. Ask for information on risks that would cause your estimate to be too low.
Answer: D