Definition, Meaning & Synonyms
overhead
noun
/ˈoʊvərhɛd/
Definition
The amount of money that is spent on running a business but is not directly tied to producing a product or service.
Examples
- The company has high overhead costs due to its large office space.
- They need to reduce overhead to improve profit margins.
- Overhead is often a significant factor in a company’s overall budget.
Meaning
Overhead refers to the expenses that are not directly linked to a specific project or service. These can include rent, utilities, and salaries for employees not directly involved in production.
Synonyms
- expenses
- operating costs
- indirect costs
- fixed costs
