overhead costs
Fixed business expenses
Overhead costs are the ongoing expenses of running a business that aren't directly tied to producing a specific product or service—rent, utilities, insurance, administrative salaries.
Unlike direct costs, which scale with production, overhead persists whether you make one unit or a thousand: We need to cut overhead costs before we can lower prices.
Often shortened to just overhead.
- depreciationAsset value reduction over time
- rentPayment for temporary use
- insuranceContractual risk coverage
- office suppliesMaterials for desk work
- back officeInternal administrative functions
lease payments · monthly bills · utilities · legal fees · IT support · accounting services · number crunching · burden · job costing · profit margin · property taxes · salaries · equipment maintenance · training programs · cost accounting · storage fees · payroll · heating
- transport financepassenger fares, pricing strategy, cost structure, baggage fees, landing fees
- business termsfranchising, revenue stream, board meeting, gross margin, markdown
- accountingbookkeeping, ledger, balance sheet, general ledger, accounts payable
- Healthcare Administrationpatient care, patient records, billing, appointments, referrals
- practice managementoffice management, billing, invoicing, payroll, staffing
- cost accountingcost analysis, cost center, cost centers, cost control, cost accounting