Overhead refers to certain costs a business incurs when producing a product. Any cost other than the direct cost of labor and the direct cost of materials is considered a form of overhead. Factory ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

Your success relies on your ability to successfully allocate your costs. Under-pricing your services can drastically affect your abilities to pay your overhead costs. At the same time, underestimating ...

While some business overhead is unavoidable, reducing these expenses can boost profit margins. Many, or all, of the products featured on this page are from our advertising partners who compensate us ...

There are many costs associated with running a business, but all of those costs don’t fall into the same bucket. One type is overhead costs, which are expenses not tied directly to the production of a ...

In financial accounting and taxes, attributing expenses to the correct category isn’t just a tip or guideline; it’s a requirement when filing IRS forms, requesting grant funds, or reporting to ...

As a former corporate controller and senior vice president of operations, I have experienced both sides of allocated overhead. I have learned manufacturing executives have more control over costs ...

Learn what irrelevant costs are in business, how they differ from relevant costs, and why knowing the distinction is crucial for effective management decisions.

Every now and then, you must be controversial and address a subject where your beliefs run counter to common practice. Overhead and overhead-cost recovery is one of these subjects. The controversy has ...