True or False: Contingency Costs are included in an estimate to account for known variables.

Contingency costs are typically included in project estimates to account for unknown variables or uncertainties that may arise during the course of a project. They serve as a financial buffer to cover unexpected expenses, which can include scope changes, unforeseen site conditions, or inflation, among others. The purpose of incorporating these costs is to prepare for situations that were not anticipated at the time of the estimate.

In contrast, known variables, which can be accurately anticipated in the planning process, would not necessitate contingency costs. Instead, the estimates for known variables would be included in the direct costs of the project. Therefore, the assertion that contingency costs are for known variables is incorrect, leading to the conclusion that the correct response is that it is false.