English · Work & Business
overhead
/ˈoʊ.vərˌhɛd/
[/ˈoʊ.vərˌhɛd/]
ongoing fixed costs
Advancednoun
Definition
The ongoing operating costs of a business that are not directly tied to a product.
Example
Working remotely cut the company's overhead by eliminating expensive downtown office rent.
Working remotely cut the company's overhead by eliminating expensive downtown office rent.
Etymology
From costs counted 'over the head' of direct production; established accounting term.
How & Where It’s Used
Used in accounting and business operations.