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Business Definition for: overhead
overhead

  1. costs of a business that are not directly associated with the production or sale of goods or services. Also called , indirect cost and expense , burden and, in Great Britain, on costs.
  2. sometimes used in a more limited sense, as in manufacturing or factory overhead.

See also direct overhead
overhead

indirect expenses of running a business not directly associated with a particular item or service sold. For example, wages paid to factory workers and the cost of production materials are direct costs. Electricity, insurance, and benefits paid to workers are overhead expenses. By applying a factor called the burden rate, cost accounting attempts to allocate overhead, where possible, to the cost of goods sold.

overhead

indirect expenses of running a business not directly associated with a particular item or service sold. For example, wages paid to factory workers and the cost of production materials are direct costs. Electricity, insurance, and benefits paid to workers are overhead expenses. By applying a factor called the burden rate, cost accounting attempts to allocate overhead, where possible, to the cost of goods sold.

Copyright © 2006, 2003, 1998, 1995, 1991, 1987, 1985 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright c 2000, 1994, 1987 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.

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