Approximate amounts. Accountants use estimates for depreciation expense, warranty expense, bad debt expense, monthly accruals for utilities, bonuses, income taxes, etc. Also see change in accounting estimate. To Top
reasonably close approximations of desired results arrived at through various strategies such as front-end estimation, rounding, or successive approximations; estimation should be practiced when measuring so students will have a good idea about reasonableness of a measure and about proper units for the measure.
A guess on the part of a service department with respect to the nature of a vehicle's problem and cost of repairing it. Although most shops will stand by their estimate, there is also the situation where the problem is caused by something which will be more expensive to repair or may be less expensive. In the case where other components are also faulty (but the estimate did not include them), the shop may contact the customer with a revised estimate saying, "We can repair what we thought was the faulty part, but we found another defective part which also contributed to the problem once we took things apart. Now the cost will be more. Do you want us to go ahead and repair that component, too?" In the case where a lesser solution repaired the problem, good shops will give you a bill that is much less than the estimate with an explanation like, "We thought we had to replace the expensive control box, but we found that one of its plugs had come loose." Also see EPA estimates.