If a firm uses program (top down) budgeting for its projects, is an activity (bottom up) budget not needed?
If it is, then of what value is the program budget?
Expert Answer
Activity budgeting is required to budget the project on the basis of task or activity.
Program budgeting is required to aggregate the income or expenditure at the project level.
The primary objective of program budgeting/top-down budgeting is to provide accurate aggregate budget as budget at individual level might not be accurate.