Meaning of the word "overhead costs" in English

What does "overhead costs" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

overhead costs

US /ˈoʊvərˌhɛd kɔsts/
UK /ˈəʊvəhɛd kɒsts/

Plural Noun

the regular costs of running a business, such as rent, electricity, and salaries, that are not directly related to the production of goods or services

Example:
Reducing overhead costs is crucial for increasing profit margins.
Our company is looking for ways to cut down on overhead costs without affecting quality.