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16 Examples of Overhead

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Overhead are operating expenses that aren't directly related to the cost of a sale. The following are illustrative examples.

Research & Development

Research related to future products.


Small tools considered expenses such as a hammer.


Advertising your brand.


Promotional activities such as a booth at an industry conference.

Travel Expenses

Travel expenses to visit a customer.


Insurance for your office locations.

Interest & Bank Charges

Banking fees and interest on debt.


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.


The cost of renting offices.


The cost of electricity, water and other utilities.

Repairs & Maintenance

Repairs to machines, company vehicles and equipment.


Accounting for the cost of tangible equipment such as machines over their useful life as defined by tax law.


Taxes such as property taxes on office locations.
Overview: Overhead
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.
Manufacturing overhead such as the cost of renting a factory are included in cost of goods sold.
Related Concepts

Business Costs

This is the complete list of articles we have written about business costs.
Applied Cost
Business Equipment
Capacity Cost
Capital Improvement
Carrying Costs
Closing Costs
Cost Of Capital
Cost Of Revenue
Cost Of Living
Direct Cost
Distress Cost
Fixed Costs
Friction Cost
Employee Costs
Holding Costs
Intangible Cost
Marginal Cost
Operating Cost
Operating Expenses
Legacy Costs
Outlay Cost
Lifetime Cost
Overhead Costs
Menu Costs
Relevant Cost
Normal Costs
Sunk Costs
Tangible Cost
Operational Costs
Travel Expenses
Unit Cost
Opportunity Cost
Variable Costs
Prospective Cost
Semi Variable Cost
Step Costs
Switching Costs
Transaction Costs
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