We solve problems and become better at solving them as we gain experience. Sometimes cost estimations go awry. For example, say that you own a landscaping company. Your regular landscaping crew all got covid and you had to use some workers who typically don't work on their own and they either are slower at performing the tasks as they don't know the tricks of the trade or they don't read your instructions right and you end up having to repurchase some plants because you have to rip them up and replant, absorbing the costs. What do we call this when costs estimates aren't correct? How do we handle them (i.e. do we absorb them, charge the client, etc.) and what can we learn from them for setting the next budget?

In general, when budgeting, how do we go about figuring out what our costs are for the coming year?