Meaning of the word "overhead cost" in English
What does "overhead cost" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.
overhead cost
US /ˈoʊvərˌhɛd kɔst/
UK /ˈəʊvəhɛd kɒst/
Noun
the ongoing administrative expenses of a business, such as rent, utilities, and salaries, that are not directly related to the production of goods or services
Example:
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Reducing overhead costs is crucial for increasing profit margins.
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Rent and utilities are significant overhead costs for any business.