Which of the following is not a method of creating a project budget?Top-down budgetingComparison budgetingActual budgetingRoll-up budgeting
Question
Which of the following is not a method of creating a project budget?
- Top-down budgeting
- Comparison budgeting
- Actual budgeting
- Roll-up budgeting
Solution
Identifying the Question
The question asks which of the listed options is not a recognized method of creating a project budget.
Analyzing the Options
- Top-down budgeting: This method involves senior management setting the budget based on overall strategic objectives.
- Comparison budgeting: This is not a standard budgeting method. It may refer to comparing budgets, but it is not a recognized technique for creating one.
- Actual budgeting: This usually refers to budgeting based on historical data and actual results from previous projects.
- Roll-up budgeting: This method involves aggregating budgets from different departments or project segments to form a comprehensive budget for the entire project.
Conclusion
Based on the analysis, Comparison budgeting is not a recognized method of creating a project budget.
Final Answer
Comparison budgeting is not a method of creating a project budget.
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