My homework tells me if my answer is an overestimate or a underestimate
How Do You Decide To Overestimate Or Underestimate?
Overestimation is usually done when a company wants to show its financial strength to other companies in the industry. It is also used when the sales targets are not true representatives of the company's abilities.
Underestimation is done for getting the tax advantage by showing losses and underestimated figures.
Underestimation is done for getting the tax advantage by showing losses and underestimated figures.