My Communities

In my opinion I think the bottom up approach is the best. This is because it allows the project manager make consultation with those who will be executing the project thereby producing more accurate budget

talking on estimate activity cost budgeting, i think that, i will go for bottom -top , that is if i am given enough time to draft by budget for the project, but how ever, top-bottom is good when the project comes as an emergency. regarding the parametric , it is good but for some one who is more focus on health project , think will prefer top-bottom and bottom-top approach more often for my projects. i can recommend parametric for those involve in building and construction given that most of their prices are standards and this approach is best for such projects.

yeah that is very true, it gives the project manager that latitude to work and consult with colleagues. but how ever it is not the best when it comes to emergencies in my opinion, here i think top-bottom is good.

it is good no doubt but how does an expert in your opinion tells me what i constantly face in the field while carrying out a particularly activity. they would either over estimate or underestimate the cost of the said activity. on this note i stand with bottom - top.

i agree with your view entirely, but with the knowledge that every project planning most be flexible and adjustable.

I think using the bottom up approach because it is more likely to produce realistic estimates

All the three approaches are good depending on the situation and setting. However combining the three approaches would be most effective in the sense that all factors will be captured for instance using the top down approach, the project manager will have input from other key positions which can be compared with the technical people on the ground by using bottom up approach. To estimate the exact costs the parametric approach can be used by costing the activities per item.

parametric is the best to use in any situation for me because of the fact that it's simple and factual based.

Use parametric approach

In my opinion, the bottom-up approach will give more realistic estimates. The persons from the field for example are more likely to provide more accurate expenses estimates. It is then the project manager's responsibility to check the information provided.

For me, i prefer a hybrid of the three approaches; top-down, bottom-up, and parametric to maximize accuracy and minimize bias likely to be caused by using any one approach in isolation.

Cost estimates can be generated using the Top-down approach that involves getting estimates from managers, the Buttom-up that involves getting estimates from the end users and by also calculating needed items per unit cost.

I believe that the parametric approach is relatively easier and more effective out of the three, any project manager can handle it without being necessarily an expert in budgeting. however, by using this appraoch, one must make sure that cost-per-unit of each item is accurate.

I believe a combination of all the three cost estimating approaches is ideal because it will ensure the accuracy of the estimates.

In my organization, we use the parametric approach most of the time since it gives us the actual unit rate. These unit rates can be updated from time to time by checking various listed suppliers in the market. Moreover, since every project has different scopes and quantities, having unit rates will be a great tool to easily compute the budget and funding requirement.

i would prefer using Top-Down and Bottom-up approach. This way, a research has been made to be able to counter any dishonest employee who may be involve in the spending.

I think all three options come in handy because certain projects have different approaches towards generating cost estimates.

I believe using the three approaches are optimal. Start with the top down approach, consult the project staff and get a bottom down approach. Then you can include the parametric approach when necessary.

i think it is best to use the bottom-up approach because you engage those that are going to spend the budget directly

I agree with using all 3 approaches because in delivering a project there are so many components involved and the appropriate applications of these 3 approaches would make the budget wholesome

While designing a project and working on the budget, I tend to apply more of Bottom to top and parametric approaches however I'm of the opinion that all 3 approaches would need to employed for a wholesome project budget

Bottom up approach as it get the best estimates on the activities needed to be done and it doesn't take long

For me parametric approach is the best approach

For me, I believe that the parametric approach to budgeting is the best, it leaves little room for inaccuracy.

I believe that I would use all three approaches whenever possible because the top-down approach is relatively quick and simple, while the bottom-up approach would produce more realistic cost estimates than top-down and the paramedic approach have a cost-per-unit that can be reliably calculated. .

Parametric approach is the best for me because it provides actual costs and not assumptions and it eliminates possibility of inflating or decreasing costs which might affect project implementation

The parametric approach is the best because we proceed from the per unit from which we can find the global price.

I believe the most effective way to generate cost estimates is to combine all three approaches and use one depending on the particular activity. There is no one size fits all approach for problem solving, thus applying the right approach based on the kind of activity is the most effective.

Parametric approach I'd the best in my own opinion because it's a straight forward and plain all you need to do correct is to have the correct calculated units before multiplying .

There are some activities which may not be measured in units for example food for the people in attendance at a given activity.

I believe you should use the bottom up approach because it helps you get a clear understanding of the project based on the people involved in the project.

In my own understanding of the three approaches to to generating costs estimates, I feel there is one method which is independent of the othr in terms of generating reliable and accurate cost estimates. Each method has its own advantages and disadvanages, therefore, the combination of the three approach will give the most reliable and accurate cost estimates.

1. First make your own estimates basing on expert input, consultations from other managers and also from research data then compare these cost estimates from what the other people who will directly be spending the money. any exageration from them will be interrogated by the cost estimates from the research done with your other team of managers.

2. then all those costs whose cost per unti we know, will be calculated basing on those particular costs giving a very reliable nd accurate cost estimates for the budget.

So alll the three ways to generate an activity based budget are quite important and should be used side by side to make sure we arrive at a very sensible and close to perfection cost estimates for the activity budget.

the top-down approach is the best one to use for cost estimation in my opinion because the intervention of experts or managers and also research, will allow to minimize as much as possible the risks of not knowing the real costs. By being informed by research, I believe that the question of the reality of the costs can be solved.

I believe the bottom-up approach is better. Even though it's time-consuming, it provides realistic estimates because the project implementers themselves are involved, and they give very accurate figures to reflect the reality on ground.

I understand your point, but don't you think the experts may not have a feel of the reality in terms of actual estimates? I think the bottom-up approach is much better in that regard.

I think the parametric is most appropriate to use when it is possible because it just entails getting the cost per unit and multiply it by the total number of units needed. However, you can use all the three approaches if you have the time and depending on the cost estimates that is needed. for instance they are estimates that you can not apply the bottom-up approach because of the peculiarity involve but they some that you will need them. it also applies to others.

My name is Ballé Emmanuel yes

Budget decision should be done when the exact plans are being brown down in segments & estimated sectional break up cost is decided.

in estimating activity costs, the parametric and the bottom-up methods will work very well together as one is able to combine ideas from staff members that may be working directly with the project and also from a project manager's individual survey or research about the costs. Ofcos it is also necessary for a top-down imput or estimate that may give an idea of industry best poractices to be employed.

It depends on the nature of the project your are taking. I consider an approach to be the best if only it is going to serve my project properly.

I think the parametric is most appropriate to use when it is possible because it just entails getting the cost per unit and multiply it by the total number of units needed. However, you can use all the three approaches if you have the time and depending on the cost estimates that is needed. for instance they are estimates that you can not apply the bottom-up approach because of the peculiarity involve but they are some that you will need them. it also applies to others.

I believe Parametric approach is the best approach to estimating project cost, because numbers never lie. Once you have the accurate cost of a deliveries and the quantity needed, then your estimate will surely be right. You can't go wrong on this approach except the cost gotten isn't right or the quantity needed for the project wasn't properly stated.

@ThaoTran said in Module 2 Discussion: Estimating Costs:

This is the module 2 discussion. You may participate in this discussion after beginning module 2.

In this module, you have learned about three approaches to estimating project costs: top-down, bottom-up, and parametric.

In your opinion, what is the most effective way to generate cost estimates? Make sure to explain your response.

Sample response: I believe that you should use the _______ approach whenever possible because _______________ .

@ThaoTran said in Module 2 Discussion: Estimating Costs:

This is the module 2 discussion. You may participate in this discussion after beginning module 2.

In this module, you have learned about three approaches to estimating project costs: top-down, bottom-up, and parametric.

In your opinion, what is the most effective way to generate cost estimates? Make sure to explain your response.

Sample response: I believe that you should use the _______ approach whenever possible because _______________ .

@ThaoTran said in Module 2 Discussion: Estimating Costs:

This is the module 2 discussion. You may participate in this discussion after beginning module 2.

In this module, you have learned about three approaches to estimating project costs: top-down, bottom-up, and parametric.

In your opinion, what is the most effective way to generate cost estimates? Make sure to explain your response.

Sample response: I believe that you should use the _______ approach whenever possible because _______________ .

@ThaoTran said in Module 2 Discussion: Estimating Costs:

This is the module 2 discussion. You may participate in this discussion after beginning module 2.

In this module, you have learned about three approaches to estimating project costs: top-down, bottom-up, and parametric.

In your opinion, what is the most effective way to generate cost estimates? Make sure to explain your response.

Sample response: I believe that you should use the _______ approach whenever possible because _______________ .

@ThaoTran said in Module 2 Discussion: Estimating Costs:

This is the module 2 discussion. You may participate in this discussion after beginning module 2.

In this module, you have learned about three approaches to estimating project costs: top-down, bottom-up, and parametric.

In your opinion, what is the most effective way to generate cost estimates? Make sure to explain your response.

Sample response: I believe that you should use the _______ approach whenever possible because _______________ .

@ThaoTran said in Module 2 Discussion: Estimating Costs:

This is the module 2 discussion. You may participate in this discussion after beginning module 2.

In this module, you have learned about three approaches to estimating project costs: top-down, bottom-up, and parametric.

In your opinion, what is the most effective way to generate cost estimates? Make sure to explain your response.

Sample response: I believe that you should use the _______ approach whenever possible because _______________ .

@ThaoTran said in Module 2 Discussion: Estimating Costs:

This is the module 2 discussion. You may participate in this discussion after beginning module 2.

In this module, you have learned about three approaches to estimating project costs: top-down, bottom-up, and parametric.

In your opinion, what is the most effective way to generate cost estimates? Make sure to explain your response.

Sample response: I believe that you should use the _______ approach whenever possible because _______________ .

@ThaoTran said in Module 2 Discussion: Estimating Costs:

This is the module 2 discussion. You may participate in this discussion after beginning module 2.

In this module, you have learned about three approaches to estimating project costs: top-down, bottom-up, and parametric.

In your opinion, what is the most effective way to generate cost estimates? Make sure to explain your response.

Sample response: I believe that you should use the _______ approach whenever possible because _______________ .

@ThaoTran said in Module 2 Discussion: Estimating Costs:

This is the module 2 discussion. You may participate in this discussion after beginning module 2.

In this module, you have learned about three approaches to estimating project costs: top-down, bottom-up, and parametric.

In your opinion, what is the most effective way to generate cost estimates? Make sure to explain your response.

Sample response: I believe that you should use the _______ approach whenever possible because _______________ .

@ThaoTran said in Module 2 Discussion: Estimating Costs:

This is the module 2 discussion. You may participate in this discussion after beginning module 2.

In this module, you have learned about three approaches to estimating project costs: top-down, bottom-up, and parametric.

In your opinion, what is the most effective way to generate cost estimates? Make sure to explain your response.

Sample response: I believe that you should use the _______ approach whenever possible because _______________ .

@ThaoTran said in Module 2 Discussion: Estimating Costs:

This is the module 2 discussion. You may participate in this discussion after beginning module 2.

In this module, you have learned about three approaches to estimating project costs: top-down, bottom-up, and parametric.

In your opinion, what is the most effective way to generate cost estimates? Make sure to explain your response.

Sample response: I believe that you should use the _______ approach whenever possible because _______________ .

@ThaoTran said in Module 2 Discussion: Estimating Costs:

This is the module 2 discussion. You may participate in this discussion after beginning module 2.

In this module, you have learned about three approaches to estimating project costs: top-down, bottom-up, and parametric.

In your opinion, what is the most effective way to generate cost estimates? Make sure to explain your response.

Sample response: I believe that you should use the _______ approach whenever possible because _______________ .

The best approach would ideally be to employ all three approaches so as to cut down on the disadvantages of any while allowing to fully explore all their advantages.

Cost estimation need to be as realistic as possible. Bottom-up cost estimation provides most realistic estimates. However, the implementation team honesty have a bearing to the results. Complimenting this with top- down estimation to verify cost ranges is key to ensure realistic estimations.

I think the easiest way to estimate costs would be to use the parametric approach. If you have a reliable estimate of the cost-per-unit, then it will be easy to get a project's budget by multiplying this factor by the quantities required. However, this approach is not always appropriate, and we would have to make use of either top-down or bottom-up approach. I think the issue with the bottom-up approach is that dishonesty is rampant in societies where we tend to work, so this would be a difficult situation to control and avoid going over-budget. It would be beneficial in those cases to count with the expertise of a local person that can help to make cost estimates and then try to assemble a budget based on his/her input. Budgeting is a critical phase and it is necessary to devote time and resources so as to build a budget as accurate as possible.

I consider the Bottom Up Approach as the most effective because the project manager is directly involved. He will take time to examine every required activity and associated costs in light of the current reality. He is also in a position to make provision for slight cost variations.

I consider the bottom up approach as effective in activity based budgeting because the project manager is directly involved. He will examine in details all the required activities and the associated costs in light of current realities. He will also have first hand information on possible short-term cost variations.

they course have been exciting and easy to do now accounting has came in words or written form so now i'm stuck in here. huuu
but slowly we will get there

To me, parametric approaches work the best as long as the individual knows the really cost of the items needed in the market especially in the world of today where prices fluctuates everyday.

I think we most probably have the most effective and realistic cost estimate when we strategically use a bottom-up approach. This is because the estimate will be coming directly from the market or seller. Though this approach might be compromised or manipulated at some point, it can be the most effective if properly measures a put in place.

I believe that you should use the use of the top-down approach whenever possible because it involves consulting experts and it is relatively easy and fast .

Bottom-up

I believe that I should use top-down approach whenever possible because it is quick and simple , but not only that but also it is no time-consuming sothat a project is done in compliance with the estimated time.

In my point of view the third approach is best methods for project budget break down estimate.

The most effective way is to combine the three approaches. Engage the project team (bottom-up) to be updated on the latest costs, at the same time engage finance manager for historical records (top-down). Similarly, check the current market costs (parametric). So combining the three is the best.

I do believe that you should use more of the bottom -up approach because it gives a perfect view from the grassroots however with the issues of dishonesty, it can be backed up by the top down approach where necessary and need is required for clarity.

For some items go with parametric approch, but for wages and othe expenses to check with experts and labours

I agree with you that parametric is the best approach to use, as one check out for the cost of an item and multiply by the number they want to purchase. That way, you’re sure of your coat estimate and won’t be surprised with coat when you’re ready for purchase.

I believe using the parametric approach is best because one may have already found out the cost of an item and will only need to multiply by the number they would want to get. That way, you’re sure of having the same or similar cost estimate when you’re ready to make purchase.

All three approaches are good depending on the nature of the project and the people involved in the budget process

Combining the three approaches is better to be more accurate in the cost estimation

I believe that you should use the the top-bottom combined with parametric approach whenever possible because it these would prevent budget inflation, and the budget would be more on target.

I believe that you should use combine both approaches because in the end you will have the advantage to have accurate estimates and also you will save time by switching to the other approaches if one approach happens not to work according to the type of project activities that you are conducting.

As for me, I feel like all three are important to be used. this is so because in a project the number of factors will determine what should be done. as you are making a budget, your need to consider the budget inputs, and this will automatically call for the type of estimating the cost to be used. it is also important to use all three, especially when your budgeting or your project is a bit complex in nature

It depends on what situation. Maybe what might work for an AgriFarm will not work for a school. SO i would say analyze the project or situation and then select which method that is more suitable.

I believe the parametric type of estimating cost is the best, since it makes use of reliable cost information to make your budget.

@ThaoTran said in Module 2 Discussion: Estimating Costs:

This is the module 2 discussion. You may participate in this discussion after beginning module 2.

In this module, you have learned about three approaches to estimating project costs: top-down, bottom-up, and parametric.

In your opinion, what is the most effective way to generate cost estimates? Make sure to explain your response.

Sample response: I believe that you should use the _______ approach whenever possible because _______________ .

bottom up approach- this is so because cost estimates are practically centred (given by people on the ground)

That is for sure youhave to check fro no parametric things with professional as time and professionalism play role in wages.

I think that using the Bottom-Up approach delivers a more realistic estimation of costs because the people creating the budget for the project know and understand all the ins and outs of a certain project in an area. Rather than relying on experts and research, it relies on first-hand knowledge of the employees/volunteers.

I believe using the three approaches together will yield better results, The top down has its biases since they get to estimate based on knowledge of how much it should cost while the bottom up is more realistic since the implementors are giving the estimate it can also be time consuming. the parametric estimates might not apply to all project activities. Incorporating all three will definitely give better cost estimates.

I think parametric is more efficient, having a unit price and multiplying it to exact quantity, i had prepare a budgets using this technique, but then, I did a market survey for each item.
Have also seen where bottom-up approach put a company to a standstill because of employees dishonesty.
Top-down approach sometimes takes time, especially when everyone wants to prove expertise in budgeting and they disagree to agree.

i prefer top down because there is expertise there

The parametric approach is the most effective way in estimating cost. This approach is usually hampered by the fact that not all estimates can be calculated per unit. The reason for picking out this approach is because the estimate is realistic and not dependent on individuals discretion.

The parametric seems ideal as it helps to give a highlight of the expected costs. Unlike the other approaches which have a number of loopholes, the parametric approach gives room for a more realistic picture of what the total budget would be like. However, it requires that one has a keen interest in the details regarding what would be required per each activity.

The best way to use is combined form. since each of them has there own advantage and disadvantage combining them in different degree based on the activity will give better bidget estimate than using one alone mechanism

Each of these three estimating techniques (Top-down, Bottom-Up and Parametric estimating may play a role in project planning and management. Uncertain time or budget estimations can affect every aspect of the project and leads to unsatisfied clients or stakeholders.

We can reduce the risk of inaccuracies by using estimating techniques.

Parametric estimating uses a formula or algorithm to calculate the cost or time needed to implement and finish a whole project or specific task. It uses historical and statistical data to make a calculation. But sometimes we don`t have historical data.

Top-down estimating budget is prepared by top manager. Most large corporations, companies use a top-down estimating metod , where management prepares a high-level budget across the entire organization with certain amounts allocated to each department. It looks at the previous year’s budget along with current business trends, and growth strategies. And they may not provide department managers with the details they need to create their budget. And it may create unrealistic expectations for department heads because they were not involved in the creation process, with many details overlooked or eliminated.

Bottom-up estimating is made department heads and other staff from the start. It is frequently seen as more accurate, because department heads know much more about their department than upper management does. It relies on individual departments or teams to create their budgets, which provide a level of detail. however it is always take so much time.

Every estimating techniques has advantages and disadvantages. I think, we can use each of them according to the conditions of the different project`s workpackage.

Application of the the two approaches seems practical depending on the complexity of the project and how it is implemented.

For me parametric approach of estimating the costs is a better approach because it brings about accountability and it is not time consuming , it is also one way of estimating costs professionally .Further , it is a very quick approach of estimating costs.

$3,000,000.00

Good job

I am of the opinion that the parametric approach should be adopted when drafting an estimate because it helps in reducing over-budgeting and/or under-budgeting.

I am of the opinion that the parametric approach should be adopted when drafting an estimate because it helps in reducing over-budgeting and/or under-budgeting.

I believe the best approach is combining the three. This works well and brings balance to timeliness and reality of projected costs. It also nurtures program ownership when other players are consulted on budget lines that need consultation of implementing teams.

Given the three approaches to choose from, I am sure I will tinker with the three in order for me to mitigate against the limitations of all three. because where the top-down method cannot capture the realistic estimation, the bottom-up approach would. where there might be delays in arriving at an estimate with the bottom-up approach, I can adopt the parametric approach especially on areas where it best fits.

I may choose Top down this method is important because you may advised with other stake holders on areas you face challenges, this will help the project to be implemented faster

Hello Dear friends
In my opinion the bottom up approach is the most effective way because we can estimate the exact costs by collecting and counselling to each individual as per their requirements.

The bottom-up approach to check your assumptions, BECAUSE Parametric estimates are easy to calculate but will not apply to every expense, so use this approach when it is possible.

Parametric seems to be the best approach.

Bottom up is way good since it encourages team work after all it gives you a rough estimate of the cost

I believe we should use a mixture of all approaches.For example to get the rough estimate, we can use the top-down approach to get the rough estimates of the budget then use the bottom -up approach to get more realistic figures.

I believe the parametric approach helps the budgeting system to be more accountable and using the bottom up approach helps to check the accuracy of the approach.

Top-Down

Parametric approach because it gives the exact cost.

I believe that you should use the parametric approach whenever possible because it provides a more often accurate picture of cost estimates.

I believe the parametric approach is the best approach because it wields analytical power; you can always make adjustments to the calculated results as and when it's needed.

Parametric, this approach allows you track every record and keep you guided about your expensive and all you need to know about what's ongoing in detail.

I believe that parametric approach is the best way because it is accurate and can save our time.

Though can not be applied to expenses, but parametric is the best because to me it sounds more accurate than the rest.

The top-down cost approach is ideal for projects because it includes all relevant costs in the decision-making process and avoids sunk costs. Additionally, it can help to identify any cost-saving opportunities that may be available. This allows managers to make informed decisions about whether or not to proceed with a project by taking into account all of the potential costs that could be incurred.