Definition, Meaning & Synonyms
o-and-o
noun
/oʊ ənd oʊ/
Definition
O-and-O is a term used to describe a particular type of accounting method where overhead costs are allocated on a per unit basis.
Examples
- In the manufacturing sector, managing o-and-o costs is crucial for maintaining profitability.
- Businesses often strive to minimize their o-and-o to enhance operational efficiency.
- Understanding o-and-o can help financial analysts make better budget allocations.
Meaning
The term o-and-o stands for ‘overhead and operating,’ referring to how businesses account for their ongoing expenses in relation to their products or services.
Synonyms
- overhead allocation
- cost accounting
- operational expenses assessment
