Susan, a project manager, uses a work breakdown structure to list the elemental tasks of a project. She then asks the team members responsible for each of these tasks to give her an estimate of the cost required to accomplish each task. Next, she adds indirect costs such as administrative costs and a reserve for contingencies to the total task cost and files her budget with the accounting department. In this scenario, Susan is using _____.
A) top-down budgeting
B) bottom-up budgeting
C) agile project budgeting
D) dynamic matrix budgeting
E) lateral budgeting

Question

Quizplus · Accepted Answer

Susan is using bottom-up budgeting, as she starts with the most detailed level of work (individual tasks) and aggregates these costs to form the total project budget, including indirect costs and reserves.

Susan, a Project Manager, Uses a Work Breakdown Structure to List