Overhead Expense
/ˈoʊvərˌhɛd ɪkˈspɛns/
Definitions
- (n.) Indirect business expenses not directly tied to production or specific projects, such as rent, utilities, and administrative salaries.
The contractor included overhead expenses in the bid to cover office rent and management costs.
Forms
- overhead expense
- overhead expenses
Related terms
See also
Commentary
Overhead expenses are distinguished from direct costs and require careful allocation in contracts and accounting.
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.