Certified Human Resource Professional (CHRP) 2025 – 400 Free Practice Questions to Pass the Exam

The process that identifies all the direct and indirect expenditures of a program is referred to as costing. Costing involves a comprehensive assessment of all expenses associated with a program, including both tangible costs, such as materials and labor, and intangible costs, like overhead and administrative expenses. This thorough assessment is essential for understanding the full financial impact of a program, allowing for better budgeting, resource allocation, and financial planning.

Costing provides the foundational data that can be used for further analysis, such as cost-benefit analysis and cost-effectiveness analysis, both of which rely on a clear understanding of all related expenditures to evaluate and compare the financial implications of different programs or options. Utility analysis focuses on the value derived from a program or intervention, often in relation to its costs, but does not specifically identify expenditures. Thus, it is the detailed nature of costing that makes it the correct answer in identifying all direct and indirect expenditures.