noun
- the ongoing business expenses not directly attributed to creating a product or service, such as rent, utilities, and administrative costs
Usage: business; accounting
Examples
- The company needs to reduce its overheads to improve profitability.
- Rent and utilities are major overheads for most businesses.
- Small businesses often struggle with high overheads relative to their revenue.
- The accountant calculated that overheads represented 30% of total expenses.
- Moving to a smaller office helped cut our monthly overheads significantly.
- Marketing costs are sometimes classified as overheads rather than direct expenses.