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A RACI chart is crucial in project management because it clarifies roles and responsibilities among team members. By designating who is Responsible, Accountable, Consulted, and Informed for specific tasks or deliverables, the chart helps ensure that everyone understands their functions and expectations, which enhances communication and efficiency. This kind of clarity reduces ambiguity, minimizing the risk of tasks being overlooked or duplicated.

The focus of a RACI chart is on the distribution of responsibilities rather than financial objectives, marketing strategies, or project timelines. While these elements are important in project management, they are not addressed by a RACI chart's primary function, which is to facilitate better collaboration and accountability among project stakeholders. This structure is pivotal for successful project execution and management.