When drafting an expense budget, such as estimating overhead expenses, it is recommended that you use a liberal estimate, because you do not want to underestimate expenses.
The expense budget shows the revenue and capital payments of various departments or ministries and presents the estimates in respect of each under plan and non-plan. In this budget, expenses mostly include operating expenses, like utilities, rent, payroll, and advertising.
One should not underestimate expenses, so in that case it is recommended that to use a liberal estimate, when drafting an expense budget and when estimating an overhead expenses.
Hence, the answer is given and explained above.
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