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Resource leveling is a project management technique that focuses on resolving over-allocations of resources and smoothing resource usage across the project timeline. The main goal is to minimize the peaks and troughs in resource allocation, ensuring that resources are effectively and efficiently utilized without being overstretched.

When resources are over-allocated, it can lead to fatigue, reduced productivity, and potential delays in project deliverables. By leveling resources, a project manager seeks to distribute work more evenly, avoiding high spikes in resource usage that can create bottlenecks. This smooths out the workload, allowing team members to work at a more sustainable pace, which can enhance morale and effectiveness throughout the project.

The other options do not reflect the primary goal of resource leveling. Increasing resource costs is counterproductive, while adjusting activity durations might fall under schedule compression tactics rather than resource leveling. Shortening project duration, although desired in some contexts, does not align with the primary focus of resource leveling, which is about balancing and managing resource workloads rather than rushing through tasks. Thus, minimizing overallocation and reducing fluctuations is the correct objective of resource leveling in project scheduling.