Top-Down

In the top-down method, the total expenditure of a project is estimated on the basis of empirical values. The individual budgets for the sub-projects and work packages are consequently derived from this, so that the goals set are distributed from the top down to the lower organisational hierarchies.

Advantages of the top-down method:

Planning takes place globally, eliminating time-consuming and cost-intensive tasks
The detailed planning takes place in the sub-projects and can be specified more precisely

Disadvantages of the top-down method:

Company management sometimes has little insight into the individual departments
Unrealistic target

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