Describe the relevance of cost forecasting in GFEBS.

Cost forecasting plays a crucial role in GFEBS as it involves predicting future expenses based on current expenditure trends, which is essential for effective budget planning. By analyzing data from past spending patterns, organizations can make informed estimates about future costs related to projects. This practice allows project managers to allocate resources more efficiently, ensuring that available finances are used wisely and that potential budget shortfalls are anticipated and addressed proactively.

Accurate cost forecasting enables project stakeholders to set realistic financial expectations and align their spending with project objectives. It enhances financial control by ensuring that projects remain within budget, which is vital for overall project success and sustainability.

While other options may touch on aspects of project management, they do not directly relate to the specific function of cost forecasting within the framework of GFEBS, which is focused on the financial aspect of project planning and management.