Research & Development
Research related to future products.Tools
Small tools considered expenses such as a hammer.Advertising
Advertising your brand.Promotion
Promotional activities such as a booth at an industry conference.Travel Expenses
Travel expenses to visit a customer.Insurance
Insurance for your office locations.Interest & Bank Charges
Banking fees and interest on debt.Administration
Any costs including salaries related to general administrative functions such as executive management, human resources and internal IT systems.Sales Costs
Sales costs such as salaries and commissions.Consulting Fees
Consulting fees related to selling, general and administrative functions.Employee Benefits
Benefits programs such as health insurance.Rent
The cost of renting offices.Utilities
The cost of electricity, water and other utilities.Repairs & Maintenance
Repairs to machines, company vehicles and equipment.Depreciation
Accounting for the cost of tangible equipment such as machines over their useful life as defined by tax law.Taxes
Taxes such as property taxes on office locations.| Overview: Overhead | ||
Type | ||
Definition (1) | Expenses that can not be tracked as part of cost of goods sold. | |
Definition (2) | Selling, general and administrative expenses not directly related to the cost of goods sold. | |
Notes | Manufacturing overhead such as the cost of renting a factory are included in cost of goods sold. | |
Related Concepts | ||
