What type of cost management can you use with estimated expenses in Xero?

Client markup is a critical component of cost management in Xero that allows businesses to manage and estimate expenses effectively. By applying a markup to client invoices, businesses can ensure that the cost of services provided includes a profit margin, enabling better financial planning and management.

Using client markup, you can set specific rates or percentages to be added to the base cost of services or products when billing clients. This helps businesses cover not just direct costs, but also indirect costs and desired profit, which is essential for ensuring sustainability and profitability. The feature is particularly useful for businesses that offer project-based services where costs can vary, allowing these businesses to project their income more accurately based on estimated expenses.

The other options don't align with the functionalities provided in Xero for managing expenses. Remote cost management is not a recognized term within Xero’s capabilities, while projected billing refers to future billing arrangements rather than cost management of current expenses. Expense evaluation may involve reviewing costs but does not specifically address the pricing strategies used for client billing and markup management.