overheads


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overheads

or

indirect costs

any COSTS that are 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 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, that render services to producing departments are similarly part of production overheads. SELLING COSTS and DISTRIBUTION COSTS, and all administration costs, are also counted as overheads since they cannot be directly related to units of product. See also FIXED COSTS.
References in classic literature ?
The fresh air that had come in through the open door made it easier to breathe, but the rushing sound overhead grew louder, and as I looked upward through the bars of my empty rack I saw a red light flickering on the wall.
(Then the noise overhead began again, a snarling growl and the voice of a human being together.
Overhead the stars were mustering, and in the west the sky was still a pale, bright, almost greenish blue.
A dolorous place it was, this canoe house, filled with groans and sighs, corpses beneath the floor and composing the floor, creatures soon to be corpses upon the floor, corpses swinging in aerial sepulchre overhead, long black canoes, high-ended like beaked predatory monsters, dimly looming in the light of a slow fire where sat an ancient of the tribe of Somo at his interminable task of smoke-curing a bushman's head.
Descending from the table, she left the parlour, and went upstairs, intending to enter the room overhead, which was the bedchamber at the back of the drawing-room.
By and by the black clouds rolled away and showed a blue sky overhead, with a silver moon shining sweetly in the middle of it and little stars winking merrily at Dorothy when she looked their way.
Excited voices were still raised overhead; but some sounded distant, yet more distinct, coming through the grating from the garden; and none were voices that we knew.
Sometimes half the horde would follow from overhead a tiger or lion that had ventured out in the daytime.
The wasps came by thousands to my lodge in October, as to winter quarters, and settled on my windows within and on the walls overhead, sometimes deterring visitors from entering.
The spring murmured drowsily beside him; the branches waved dreamily across the blue sky overhead; and a deep sleep, perchance hiding dreams within its depths, fell upon David Swan.
So long as that kite was flying overhead the birds lay low and the crop was saved.
The trail began to rise out of the jungle, dipping at times into festering hollows of unwholesome vegetation, but rising more and more over swelling, unseen hill-slopes or climbing steep hog-backs and rocky hummocks where the forest thinned and blue patches of sky appeared overhead.