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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Overhead

Costs that result from having and maintaining a business. Rent is a primary (and expensive) example of direct overhead, as are office supplies.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

overhead

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
References in periodicals archive ?
Example: If the year's fixed operational overhead costs for Andrew's Landscaping total $132,000, a cost of $11,000 can be assigned to a single month of operation ($132,000 / 12 months = $11,000).
There is still another way to deal with remaining overhead costs after an offshoring decision.
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 4.63, followed by allocation of project overhead costs as a proportion of total direct cost with MS of 3.61, next in the order of rank were allocation of project overhead costs as a proportion of direct material costs and as proportion of direct labour costs.
As a starting point, WoodCite was populated with historical data records of Wood Inc., including company information, workforce data, activity list, historical overhead costs, shipping and payment terms, material information, and a list of products produced.
A majority (86%) of the contractors takes overhead cost determining the sum of labour (L) and equipment (E) usage costs as the basis.
However, building contractors often fail to evaluate adequately the actual overhead costs, which represent the largest part of indirect costs of construction.
The first question relates closely with this already described situation in the change of overhead cost share.
The function of machine cost per hour includes the addition of overhead costs proportional to the used machine time.
Step 3: Estimate Total Overhead Costs for Order Receipt, Processing, Shipping and Collection.
This would be true as long as the managers were compensated for lowering overhead costs or managing working capital better--or even if the bonus were based just on the ratio of assets employed to sales.
One sign that the new company is working to rein in overhead costs came in February, when 29 of 126 PlanetOut and Gay.com employees lost their jobs.
Instead of the industry norm to keep overhead costs low by reducing staff and salaries, practices that spend more than the average on staff salaries do better financially in the end.