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as in:  financial overhead

We’re trying to reduce overhead in case John is laid off.
  for a business:  recurring costs that are not direct inputs into generating income


for a household:  all recurring costs (such as rent, utilities, car payments, groceries, etc.)
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For example, when a business pays for materials and labor to create a product, those are direct costs that are not considered part of overhead. But rent, insurance, utilities and so forth are overhead.

Labor not directly involved in creating a product, such as the salary of the president of the company, is considered indirect labor and is part of overhead.
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  • We’re trying to reduce overhead in case John is laid off.
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Associated words [difficulty]:   overhead
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Most commonly used in these subjects:   Personal Finance, Business, Engineering
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