A budget that is created by starting with the work breakdown structure,determining costs for each work package,and then adding these costs together is:
A)Zero-based budgeting.
B)Top-down budgeting.
C)Bottom-up budgeting.
D)Activity-based budgeting.

Question

Quizplus · Accepted Answer

The budgeting approach described in the question, which starts with the work breakdown structure and the costs of each work package, is known as bottom-up budgeting. This approach involves breaking down a project into smaller, more manageable pieces and estimating the costs of each individual component. By adding these individual costs together, a comprehensive budget for the entire project can be created. Bottom-up budgeting is often seen as more accurate and reliable than top-down budgeting, which is based on high-level estimates and then divided down into smaller components. Zero-based budgeting and activity-based budgeting are different budgeting approaches that do not specifically involve breaking down a project into smaller components in the way that bottom-up budgeting does.

A Budget That Is Created by Starting with the Work