Description: Overhead assessment is the process of analyzing and determining the indirect costs associated with an organization’s operational activities. This process is essential for understanding how resources are distributed and utilized within a company, allowing managers to make informed decisions about resource allocation and process optimization. Overhead assessment involves identifying all costs that cannot be directly attributed to a specific product or service, such as general administrative expenses, maintenance, and other indirect costs. By conducting this assessment, companies can gain a clearer view of their cost structure, helping them to set more competitive prices and improve profitability. Additionally, overhead assessment is crucial for budgeting and financial planning, as it provides critical data that influences income and expense projections. In an increasingly competitive business environment, the ability to evaluate and manage overhead has become a key skill for business leaders, enabling them to adapt to market changes and enhance operational efficiency.
