Overhead

An overhead is a cost that is not directly related to the production of a specific good or service but that is indirectly related to a variety of goods or services. For example, the cost of maintaining and insuring a large factory is an indirect production cost that must be spread over a number of products or services.

 

reference: Business Studies / Accounting. Accounts & Finance Glossary. Jim Riley BA(Hons) MBA FCA // tutor2u

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