1. Resource consumed or lost in completing a process, that does not contribute directly to the end-product. Also called burden cost.
2. Accounting: A cost or expense (such as for administration, insurance, rent, and utility charges) that (1) relates to an operation or the companyas a whole, (2) does not become an integral part of a good or service (unlike raw material or direct labor), and (3) cannot be applied or traced to any specific unit of output. Overheads are indirect costs.
3. Data communications: Data bits added to user-transmitted data, for carrying routing information and error correcting and operational instructions.
4. Utilities: Energy or water lost during delivery from the generating or production plant to the end user.
Use 'overhead' in a Sentence
I had to put my suitcase in the overhead compartment because it was too big to fit with me on my seat.
When I donate to charities, it is important to me to find the ones that run with minimal overhead so that more of each dollar I donate will go to the actual cause instead of administration.
When we picked up the product we realized that it would take two more men to load which will add another couple hundred to our overhead.
You Also Might Like...
