overheado·ver·head /ˈəʊvəhedˈoʊvər-/ noun [countableC, uncountableU]ACCOUNTING a company’s general costs for activities not related to particular productsSuch costs count as an overhead of the business, and VAT on them is deductible.
Because overhead costs won’t increase, profit margins at the hospital should expand.
It spends about 17 cents to sell $1 of its goods, among the highest overheads in the tire industry.
Firms have centralized buying to reduce both cost of goods and administrative overheads.
→ direct overhead