Project Expenditures: Examining the Financial Projections

Projected Project Expenditures

Question

Which of the following shows projected project expenditures?

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D.

A.

The correct answer is B. Cash flow schedule.

Explanation:

A. Work breakdown structure (WBS) is a hierarchical breakdown of the project deliverables and work activities into smaller, manageable components. It is used to organize and define the total scope of the project. Although it provides information about the work activities and the deliverables, it does not provide information about project expenditures.

B. Cash flow schedule is a document that shows the projected cash inflows and outflows of the project. It outlines the timing of when the project will receive money (inflows) and when it will pay money (outflows). By using this information, the project manager can estimate the project's future cash requirements and ensure that sufficient funds are available to complete the project.

C. Cash burn rate is the rate at which a company spends its cash reserves. It is the amount of money that a company spends each month to cover its expenses. Although it provides information about the company's cash reserves, it does not provide information about project expenditures.

D. Budget milestone is a significant event in the project's timeline that requires a significant amount of money to be spent. It is used to measure the progress of the project and to ensure that it stays on track. Although it provides information about the project's progress and the amount of money spent, it does not provide information about projected project expenditures.

In summary, the projected project expenditures are shown in the cash flow schedule.