overhead

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Related to Overhead cost: fixed cost

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 ?
Table 6 shows that among the small contractors, the use of preliminary items and bill of quantities in project overhead cost allocation ranked first with MS of 4.
Overhead cost calculation methods (2004) 58% in percentages using of own overhead cost index 17% in percentages using of own overhead cost index or using preliminary 25% using preliminary Note: Table made from bar graph.
Overhead costs of a company are an important research object for construction economics scientists and analysts.
These traditional cost systems often lost their ability to find exact information about costs for individual output, services and costumers, because they allocate growing shares of overhead costs according simply keys, most of the time proportionally according to the high of the direct costs.
Based on the regression results and the foregoing analysis, the accountant should recommend that machine hours be selected as the cost driver to apply overhead costs to production.
It is obvious, that if a contractor does not know his actual overhead costs, an unsuccessful effort to cover the company's overhead costs may result in financial collapse of a construction company.
These systems initially trace overhead costs to specific manufacturing support and production departments and then use departmental rates to allocate these costs to individual products.
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).
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.
Thus, the plain language of the constitutional provision approved by the voters only required the counties to pay overhead costs for the offices specified in subsection (c)," wrote Justice Peggy Quince in the September 22 opinion, in which the other six justices concurred.
FlexNet, a radio frequency (RF) fixed network utility meter reading system designed to increase meter reading efficiency, reduce overhead costs, and enhance customer service, is now available to the electricity and combination utilities.