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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
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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

  1. Top-down budgeting: This method involves senior management setting the budget based on overall strategic objectives.
  2. 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.
  3. Actual budgeting: This usually refers to budgeting based on historical data and actual results from previous projects.
  4. 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.

This problem has been solved

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