6/25/2023 0 Comments Overhead expenses![]() ![]() Overhead costs can be fixed, variable, or a hybrid. These include the cost of raw materials and cost for maintenance. Overhead refers to the ongoing costs to operate a business but excludes the direct costs associated with creating a product or service. Overhead Expenses includes Engineering and Administrative Supervision, Transportation allowances, Office Expenses, Premium on Contractors All Risk Insurance (. Variable Costs: Costs that are different each time they are paid are called variable costs.Semi-Variable Costs: Semi-variable costs differ over time but not drastically, such as a salesperson’s monthly commission, or utility bills throughout the year.Things like rent, salary, reoccurring office orders, insurance costs, etc. Manufacturing overhead (other): The cost of factory utilities. Fixed Costs: These are costs that stay the same over the history of payments. ![]() Overhead Costs are a mixture of three types of costs:
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