Top-Down Budgeting: Advantages

The advantage of top-down budgeting is that top management's estimates of project costs, in aggregate terms, often tend to be quite accurate. Furthermore, these aggregate estimates provide the basis for the disaggregation process of allocating costs to work packages and individual tasks, thereby providing the important feature of budgetary discipline and cost control. Also, because the senior level managers are directly involved in developing the project budget, there is a sense of commitment, ownership and support for creating a viable project budget.