Meaning of “indirect overhead” in the English Dictionary


"indirect overhead" in Business English

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indirect overheadnoun [ C ]

uk us

ACCOUNTING a part of the overheads (= money that a business spends on buildings, equipment, etc.) that is not connected directly to producing a particular product or providing a particular service:

The costs of raw materials, labor, and indirect overheads must be carefully studied before you set the selling price of your product.

(Definition of “indirect overhead” from the Cambridge Business English Dictionary © Cambridge University Press)