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Top down vs. Bottom Up Budgeting

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Which is better the top-down budgeting process or the bottom-up methods? Why?

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This detailed solution outlines which is better top down or bottom up budgeting methods. It gives examples and a link.

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Neither top-down budgeting or bottom-up budgeting is better. They are two different methods used, dependent upon corporate culture, the project, or the people involved. Bottom up budgeting is when you make a list of things you need to do/buy for a particular project, lists the costs for each item, add it together, and then submit a request for that amount of money. The problem you might have with this method is not accurately forecasting costs (either too high or too low). It is important to have ...

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Sally Baldwin, Ed.D
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  • BA, University of Southern California
  • MSS, United States Sports Academy
  • Ed.D, Boise State University
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