What is a benefit of using the top-down estimation technique?

Using the top-down estimation technique offers the significant benefit of quickly providing an overall estimate for the project or task at hand. This approach allows decision-makers to assess the financial and resource implications without delving into extensive details initially. Because top-down estimation begins with a higher-level perspective, it enables rapid assessments that can aid in strategic planning and resource allocation, especially in the early stages of a project where speed is often essential for momentum and direction.

In contrast, the method does not focus on maximum detail, which is typically associated with bottom-up estimation approaches. Stakeholder involvement may also be less extensive in top-down estimations since the initial estimates originate from a higher level of management rather than collaboratively gathering input from all stakeholders. Furthermore, while it involves less in-depth planning than other methods, the primary advantage remains its ability to yield quick estimates that assist in guiding the project forward.