Certified Supplier Quality Professional (CSQP) Practice Exam

Which document gives a formal breakdown of expected project costs?

1. A report

2. A budget

3. A summary

4. A projection

The correct answer is: A budget

The correct answer, which is a budget, plays a crucial role in project management as it provides a formal breakdown of all expected costs associated with a project. A budget outlines estimated expenses in various categories, helping stakeholders understand financial allocations and monitor spending throughout the project's lifecycle. This structured document ensures that financial resources are effectively planned and utilized, allowing for better decision-making and fiscal responsibility. The other options, while related to financial or operational planning, do not serve the same purpose. A report may provide insights or updates but lacks the specificity of a formal cost breakdown. A summary typically condenses information and does not detail financial elements. A projection may estimate future costs but does not offer the structured format and detailed categorization that a budget provides.