overhead

(redirected from Overhead Costs)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia, Wikipedia.

Overhead

The expenses of a business that are not attributable directly to the production or sale of goods.

Overhead

Costs that result from having and maintaining a business. Rent is a primary (and expensive) example of direct overhead, as are office supplies.

overhead

overhead

or

indirect cost

any COST that is not directly associated with a product, that is, all costs other than DIRECT MATERIALS cost and DIRECT LABOUR cost. Production overheads (factory overheads) include the cost of INDIRECT MATERIALS and INDIRECT LABOUR along with other production expenses like factory heat, light and power, and depreciation of plant and machinery. The cost of factory departments such as maintenance, materials stores and the canteen which render services to producing departments are similarly part of production overheads. Most SELLING COSTS and DISTRIBUTION COSTS and all ADMINISTRATION COSTS are also counted as overheads since they cannot usually be directly related to units of product. See also FIXED COST, STANDARD COST.
References in periodicals archive ?
In the past, social enterprises and charitable organizations defined success by how low the overhead costs were," he explains.
Another definition describes overhead costs as those that are not a component of the actual construction work but are incurred by the contractor to support the work (Cilensek 1991).
Overhead costs of a company are an important research object for construction economics scientists and analysts.
Later in the opinion, Quince wrote: "The appellants are essentially arguing that, because the electorate agreed to require the counties to pay the overhead costs of those public offices named in subsection(c), they implicitly approved county funding of overhead costs of any other public judicial offices created by the Legislature in the future.
They used mainly absorbing costing, so called traditional cost systems, where were overhead costs allocated by the overhead rates, which reply mainly to the amount of spent labor by the individual goods.
The Machine-dependent manufacturing overhead cost (Mach.
In the traditional approach of allocating overhead, all overhead costs are estimated for the upcoming year, added together in a single cost pool, then spread across the estimated number of labor hours to be used.
To arrive at a correct estimate to allocate overhead costs, the CPA must have input from the appropriate personnel.
When the overhead costs are added together, (24 percent compliance costs, 33 percent disincentive costs, and 8 percent other costs), they total 65 percent of tax revenue.
Factory overhead costs are applied to the job using the predetermined overhead rate (see the National Public Accountant, April, 1993, "Accounting Scene" article for a discussion of this rate).
8 million in dispute between the companies relates largely to this overhead cost reduction for DHL and other overhead costs of ABX that DHL believes it is not responsible for.
This plumbing estimating service affords small businesses and small contractors in reducing overhead costs by 100%, and also helping to increase profits.