Definitions (4)

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.

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  • 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.

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  • 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.

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