Overhead Cost
/ˈoʊvərˌhɛd kɒst/
Definitions
- (n.) Indirect expenses not directly attributable to a specific project or product, often allocated proportionally in contracts or business accounting.
The contractor included overhead costs in the total bid for the government project.
Forms
- overhead cost
- overhead costs
Related terms
See also
Commentary
Overhead costs typically require careful allocation methods in contracts to ensure compliance with funding rules, especially in government procurement contexts.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.