What is the purpose of cost budgeting?

• A. To maximize costs, particularly in multi-track cases
• B. To estimate and control costs, particularly in multi-track cases
• C. To publish costs to the court
• D. To determine winning probability

Answer: (B)

Cost budgeting is about estimating and controlling the costs of litigation, especially in multi-track cases. In these cases, parties prepare a costs budget that forecasts the expenses likely to be incurred at each stage of the claim. The budget serves as a practical ceiling to keep costs proportionate and within reasonable expectations, guiding both planning and scrutiny by the court. This is why the best answer is the one that emphasizes estimating and controlling costs. The other options don’t fit: budgeting isn’t about maximizing costs, publishing costs to the court, or predicting the chances of winning.