overhead
Say it: OH-vuh-hed /ˈoʊvɚhɛd/ · noun
What “overhead” means
Regular business costs that aren't for making a particular product.
More precisely: The ongoing costs of running a business, like rent and utilities, not tied to specific products.
Example: “Going fully remote cut our overhead by a third.”
When to use it
When discussing the basic costs of keeping a business running, such as rent and electricity. It is standard business language.
Similar words
operating costs, running costs, fixed costs
Quick check
A pottery studio pays rent and electricity even during a month when it makes no pots. Those costs are…
overhead or materials?
Show the answer
overhead
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