William, a project manager, needs to prepare the budget for a new software development project. To do so, he takes inputs from other managers who have worked on similar projects in the past. After estimating the overall project cost, he gives the estimates to his team members so that they can split up the cost of each individual task involved in producing the required deliverable. In this scenario, William 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

William is using top-down budgeting because he starts with an overall project cost estimate based on inputs from managers with experience in similar projects, and then breaks down the costs for individual tasks. This approach involves starting with a macro-level budget and then distributing it to specific parts of the project.

William, a Project Manager, Needs to Prepare the Budget for a New