This glossary uses Visual Finance™ to bring financial terms to life. Each example shows data from the Round Number Company, a fictional business with simplified figures to make learning easier. For more details, visit 'How to Read Visual Finance'.
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.
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.
The above is our generic explanations of common corporate financial terminology. Actual meanings can vary widely from company to company; in order to have the correct internal definition you need to ask your Finance Department, "What do you mean by that?"
term list.