Overhead costs are the ongoing expenses required to operate a business that are not directly tied to creating a product or service. These costs include things like rent, utilities, salaries of non-production staff, and office supplies, which support the overall business operations but do not directly contribute to revenue generation. Understanding overhead costs is crucial for budgeting and resource allocation as it helps in determining pricing strategies and overall financial health.
congrats on reading the definition of Overhead Costs. now let's actually learn it.