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:
Reducing overhead costs is crucial for increasing profit margins.
Rent and utilities are significant overhead costs for any business.