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.

Opposites
cost attribution

overhead costsdirect costs

Costs traceable to production

cost of goods sold · manufacturing costs

cost variability

overhead costsvariable costs

Expenses changing with output

variable expenses

Family

costs, overhead

Familiarity
Top 200,000
Profile
Used worldwide · Timeless · Abstract · Rated G