|Overview: Overhead Costs|
Costs that can't be directly related to revenue.
What are Overhead Costs?
John Spacey, 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.
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