Overhead

Accounting Definitions

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Overhead Definition

Term Definition
Overhead is the ongoing business expenses that do not directly produce revenues.

Extended Definition
Overhead includes all of the indirect expenses related to operating a business, but not to producing a good or delivering a service. Overhead costs are considered fixed expenses and do not change with the rise and fall of revenue each month. Overhead can include costs such as rent, utilities, and depreciation.

Related Article
Overhead Expenses

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