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A project budget report is showing our project as spending 35,000 against a budgeted amount of 40,000. What does this report tell you about the

A project budget report is showing our project as spending 35,000 against a budgeted amount of 40,000.  What does this report tell you about the project?
1. we can't be sure how the project is going
2. we should check to see if all bills have been paid
3. we are doing a good job managing the project
4. we are spending less than we should for the project

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