overhead

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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 ?
All contractors using index method make use of their own overhead cost index.
According to the Lithuanian certified recommendations for construction cost estimation the overhead costs of a construction company are estimated as the percentage of direct costs or direct labour costs.
The first question relates closely with this already described situation in the change of overhead cost share.
The machine dependent production overhead costs are calculated automatically based on the feature description applied to each, demand and supply.
If fewer projects are won than were planned for, the actual overhead costs are not recovered and the company's earnings are reduced.
Greater control over factory overhead costs can be achieved if two accounts are used, one to record the actual factory overhead costs incurred (Factory Overhead Control) and another to record the amount applied to products (Factory Overhead Applied).
A construction company's overhead costs directly reflect its management system, organization of company's activity and use of its available assets and facilities.
For Jupiter, if the year 2 Hi-V inventory increase occurs because of increased production, and if75% of overhead costs are variable, tax savings in year 2 increase from 2% to 3% Thus, in general, a growing company with increasing production, sales and inventories will benefit even more than Jupiter.
If the actual factory overhead costs are different than expected or if the allocation basis usage is not as anticipated, the amount of factory overhead applied to the products will not equal the amount of cost incurred.
The webinar, "Moving Towards An Overhead Solution," aims to help social enterprises find a solution to overhead costs, which can be a crippling problem for those just starting off.
V, [section]14(c), the court noted that it specifies that counties are required to fund certain overhead costs for "trial courts, public defenders' offices, state attorneys' offices, and the offices of the clerks of the circuit and county courts performing court-related functions.