Overhead(s)

The after-COS expenses related to normal operation of the business including R&D, advertising, salaries, rent and utilities, but excluding interest expense, taxes, and exceptional (one-time) charges.

“What do you mean by that?”

Overheads may also be attributable to specific areas or operations of the business, e.g. Factory Overheads.

Generally Overheads can also be called Operating Expense or OpEx. See discussion at Costs & Expenses.

The terms Overhead, Operating Expense, Indirect Costs, and Fixed Costs are very similar. Check how each term is used in your company.

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Overhead(s)

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