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In top-down budgeting, a budget is set at the beginning of a project, and each phase...

In top-down budgeting, a budget is set at the beginning of a project, and each phase of the project must confirm its expenditures to that overall budget.

In contrast, in bottom-up budgeting, each project phase sets its budget, and the aggregate of these small budgets comprises the project budget as a whole.

Discuss the implications of each approach. Which approach is more appropriate for an innovative vs. a well defined project? Which approach may lead more easily to budget overruns? Do you think it's possible for any project budgeting process to be entirely top-down or entirely bottom-up, or is it more likely to have a mix of two?

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