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What are Overhead Costs?

 , updated on July 10, 2023
Overhead costs, or simply overhead, are business expenditures that can't be directly related to revenue. Overhead includes any cost that stays the same as revenue rises or falls. In many cases entire departments of an organization are considered overhead including research & development, technology, marketing, executive and administrative functions. Overhead can also be broken down at the expense item level to include things such as rent and insurance.
Overview: Overhead Costs
Type
Business Cost
Definition
Costs that can't be directly related to revenue.
Related Concepts
Direct Cost
Next: Examples of Overhead Costs
More about business costs:
Abatement
Applied Cost
Business Equipment
Capacity Cost
Capex
Capital Improvement
Carrying Costs
Closing Costs
COGS
Cost Of Capital
Cost Of Revenue
Cost Of Living
Direct Cost
Distress Cost
Expenses
CAC
Fixed Costs
Friction Cost
Employee Costs
Holding Costs
Intangible Cost
Marginal Cost
Operating Cost
Operating Expenses
Opex
Legacy Costs
Outlay Cost
Lifetime Cost
Overhead Costs
Menu Costs
Relevant Cost
Shrinkage
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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