Overheads

Overhead refers to the ongoing expenses that a business incurs as part of its regular operations, but which are not directly attributable to a specific product or service. Overhead costs are essential for running a business but are not directly tied to the production or sale of goods or services.

Examples of overhead costs include bill rate overhead for a project, equipment overhead for a project, and labor overhead for a project. These costs are incurred regardless of the level of production or sales and are typically considered fixed costs.

Overhead costs are important for organizations to consider when setting costs for their projects, equipment, and labor. By understanding their overhead costs, organizations can make informed decisions about pricing, budgeting, and resource allocation.

It's important for organizations to manage their overhead costs effectively to ensure that they are not spending more than necessary on non-essential expenses.

In this section:

What is an overhead?

How do I add an overhead?

Why is the Overheads link not working?

How do I delete an overhead?