Overhead costs are typically indirect expenses associated with running a business, such as rent, utilities, and administrative salaries. These costs are not directly tied to a specific project or product but are necessary for overall operations. Generally, businesses allocate overhead costs across various departments or projects, and ultimately, they are absorbed by the company as a whole. This means that while no specific individual gets paid for overhead, it is factored into the pricing of goods and services, indirectly affecting profits and employee compensation.
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