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What are overhead costs?

Glossary definition

What are overhead costs?

Overhead costs

Overhead costs are fixed operating expenses that aren’t linked to a product or a service. These are typically regularly occurring expenses that the company needs to operate like internet costs, insurance, rent, employee salaries, utilities, accounting fees, legal fees, office supplies, etc. Overhead costs are typically categorised into three segments: fixed, variable, and semi-variable.

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