Cost Estimation is the process of predicting the expenses associated with a project or task. It involves analyzing various factors such as materials, labor, and overhead costs to provide a comprehensive financial forecast. Accurate cost estimation helps businesses budget effectively and allocate resources efficiently. There are different methods of cost estimation, including analogous estimating, parametric estimating, and bottom-up estimating. Each method has its own advantages and is chosen based on the project's complexity and available data. Effective cost estimation is crucial for project success, as it influences decision-making and financial planning.