There are two approaches to establishing the total budgeted cost for each work package:
A) top-down and bottom-up.
B) horizontal and vertical.
C) committed and actual.
D) aggregated and disaggregated.

Question

Quizplus · Accepted Answer

The two approaches for establishing total budgeted cost for each work package are top-down and bottom-up. Top-down approach involves estimating the entire project cost and dividing it among the work packages based on percentage of the project. Bottom-up approach involves estimating the cost of each work package individually and then aggregating them to determine the total project cost. Using a combination of both approaches may provide the best results.

There Are Two Approaches to Establishing the Total Budgeted Cost