What is the relationship between cost and quantity primarily used for?

The relationship between cost and quantity is primarily utilized for understanding the value provided to the client. This relationship helps project managers to analyze how much value is being delivered in relation to the costs incurred. When project managers assess costs alongside the quantity of services or products delivered, they can determine if the expenditure aligns with the benefits provided to the client. This understanding is crucial for ensuring that projects are not only completed within budget but also deliver significant value, addressing the client's needs effectively.

In practical terms, this means that as the quantity of services increases, project managers need to evaluate whether the cost associated with producing or delivering those services is justified by the value the client perceives. A clear understanding of this relationship allows for better decision-making regarding resource allocation, pricing strategies, and overall project planning and execution.