Overheads

Overheads are business costs that are related to the day-to-day running of the business. Unlike operating expenses, overheads cannot be traced to a specific cost unit or business activity. Instead, they support the overall revenue-generating activities of the business.

• Overheads are business costs that are related to the day-to-day running of the business.
• Overhead expenses vary depending on the nature of the business and the industry it operates in.
• Overhead costs are important in determining how much a company must charge for its ______ _______ _________ ____ ___ __________.
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