Description: Overhead costs are ongoing expenses that a business incurs that cannot be directly attributed to the creation of a specific product or service. These costs are essential for the overall functioning of the company and can include expenses such as office rent, utilities, administrative staff salaries, and equipment maintenance costs. They are often considered indirect costs and are crucial for financial planning and cost management. Proper identification and allocation of these costs are fundamental to determining the profitability of a product or service, as well as establishing competitive pricing in the market. In the context of technology and cloud computing, overhead costs may include expenses related to infrastructure, data management, and security, which are necessary to maintain efficient and secure operations. Effective management of overhead costs allows companies to optimize their resources and improve long-term profitability.
