Cost estimates are calculations that predict the expenses associated with a project or task. They help individuals and organizations budget effectively by providing a clear idea of how much money will be needed. Cost estimates can include various factors such as materials, labor, and overhead costs, ensuring that all potential expenses are considered. These estimates are often used in fields like construction, manufacturing, and event planning. By creating accurate cost estimates, businesses can make informed decisions, allocate resources wisely, and avoid unexpected financial issues. This process is essential for successful project management and achieving financial goals.