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Definition[]

Overhead (also overhead costs) is "the ongoing operating costs of running a business."

Overhead costs

support a specific part or function of the company rather than the whole company. Examples include the cost of factory maintenance, material handling, and worker fringe benefits, all of which can be shared proportionally among specific manufacturing jobs.[1]

References[]

  1. Defense Acquisition University, ACQuipedia, Indirect Costs (full-text).
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