Which project costs typically do not need to be estimated?

The correct choice regarding project costs that typically do not need to be estimated is allowances. Allowances are specific amounts set aside for particular tasks or items that may not be fully defined at the outset of a project. For example, in construction, an allowance might be included for fixtures or finishes that will be selected later on. Since allowances are predetermined figures rather than variable estimates, they do not require detailed estimation like other cost categories.

In contrast, direct labor costs, material costs, and overhead costs typically require careful estimation based on project specifications, labor rates, material prices, and anticipated project timelines. These costs can fluctuate based on market conditions and project requirements, making their estimation critical for accurate budgeting and financial planning. This distinction highlights why allowances stand out as unique in their treatment within project budgeting, as they simplify cost calculations for uncertain elements of a project.