Project Budget and Control
Preparing a Budget
Top-down budgeting is business-planning system whereby the budgeting process begins with information flowing from the very top of the organization down to the departmental or divisional levels within the organization. The top down approach could be used in a large organization that deals with a project they have done before. The reason behind using this approach would be the fact that this is a big project. Therefore, an overall estimate would be made of task that are higher in level and then those estimates of higher-level tasks are then used in setting limits of the costs of lower level tasks. The advantage of using this method is the fact that there will be no need of relying on low-level managers to come up with information on budgeting. Therefore, the business will allow lower level managers focus on their specific departments and hence do their level best.
Bottom-down budgeting is a business planning system whereby departments are involved in budgeting and the departmental managers...
A bottom-down approach can be applied in a project that requires particular attention by all the managers in departments such as an organization introducing a new product into the market. The rationale behind choosing this budgeting system is the fact that the departmental managers need to be involved in their respective departments especially when it comes to the budget allocation. The advantage of this budgeting system is that fact that departmental managers are free to procure all they require as long as they ask for the right amount of money they need. It also allows for clear information flow and the use of detailed data available at the level of project management as the basic source of schedule, cost and the resource requirement information.
Project Control Systems
The article project controls; what is it and why is it important anyway? Starts by giving a definition of project controls. Project controls are defined as management actions,…
