What is the meaning of 'cost leakage' in a business case?

Cost leakage refers specifically to the unplanned costs that arise during a project, which can occur due to various reasons, such as scope changes, inefficiencies, or unforeseen challenges. This concept is crucial in the context of a business case because it highlights the importance of accurately estimating and managing costs throughout the lifecycle of a project. Detecting and addressing cost leakage early can help in keeping the project within its budget and achieving the desired financial outcomes.

In contrast, other options focus on different aspects of business financials. Unexpected revenue growth does not align with the concept of costs and may indicate an unexpected positive outcome rather than a challenge. Expenses that are accounted for do not represent leakage since they are already recognized in the project budget. Anticipated future costs, while important for planning, do not capture the essence of cost leakage, which deals specifically with costs that have not been planned for or that exceed expectations.