Explain the concept of 'scope' in PCI DSS compliance.

The concept of 'scope' in PCI DSS compliance refers specifically to the systems and environments that store, process, or transmit cardholder data. When determining the scope, organizations must identify all components that are involved in handling sensitive payment information. This includes not only the servers and applications that store or process the data but also the networks and devices that might have access to this information.

Understanding the scope is critical for compliance because it defines the extent of the PCI DSS requirements that must be met. This helps organizations to focus their security efforts where they are most needed and ensures that all relevant systems are adequately protected against data breaches. By accurately defining the scope, organizations can better manage their compliance activities and risk assessment.

The other options mentioned do not accurately capture the essence of 'scope' in the context of PCI DSS. Budget allocations, physical locations per se, and the workforce management of cardholder data are important aspects of an organization’s security framework but are not directly related to the definition of scope in PCI compliance.