What should be funded from a change budget?

C.

In project management, a change budget is a budget set aside to cover the costs of changes to a project's scope, schedule, or budget. The purpose of a change budget is to provide a controlled process for making changes to a project while ensuring that the project remains within its agreed-upon constraints.

Answering the question, the option C is the one that should be funded from a change budget, which is an agreed change to the scope of a project.

Option A, the Starting up a Project process, is a process that is part of the PRINCE2 methodology for project management, which focuses on the initiation stage of a project. It is not a change that would typically require funding from a change budget.

Option B, a fallback plan, is a plan developed to be implemented in case the original plan fails. It is not a change to the project's scope, schedule, or budget and should not be funded from a change budget.

Option D, a change to a plan, within allocated tolerances, due to poor estimating, is a change that can be accommodated within the project's existing budget, and therefore, should not be funded from a change budget.

In summary, a change budget should be used to fund changes to a project's scope, schedule, or budget that have been agreed upon by the project stakeholders. The option C, an agreed change to the scope of a project, is the only option that fits this description and, therefore, should be funded from a change budget.