What is a project scope statement?

A project scope statement is essential in project management as it provides a clear and concise definition of what the project entails. It identifies the project's goals, objectives, and deliverables, ensuring all stakeholders have a shared understanding of what is included and what is excluded. This clarity helps manage expectations and lays the groundwork for effective project planning and execution.

The project scope statement serves as a foundational document that guides the development of project plans and outlines the boundaries of the project. It helps in preventing scope creep, where additional tasks or deliverables are added without proper management and approval. By establishing key deliverables and boundaries, this document is integral for successful project completion, enabling project managers to measure progress against the defined scope.

Other options do not adequately capture the essence of a project scope statement: one focuses on financial aspects, another is concerned solely with budget reviews, and the last pertains to scheduling activities, all of which are important but distinct components of project management. The correct answer encapsulates the purpose of defining the project itself, which is central to effective project management practices.