TERM OF THE DAY overhead 1. Resource consumed or lost in completing a process, that does notcontribute directly to the end-product. Also called burden cost. 2. Accounting: A cost or expense (such as for administration, insurance, rent, and utility charges) that (1) relates to an operation or the companyas a whole, (2) does not become an integral part of a good or service (unlike raw materialor direct labor), and (3) cannot be applied or traced to any specific unit ofoutput. Overheads are indirect costs. 3. Data communications: Data bits added to user-transmitted data, for carrying routing information and error correcting and operational instructions. 4. Utilities: Energy or water lost during delivery from the generating orproduction plant to the end user. Learn more about this term Usage Example The company's net profits ended up being less than predicted because of unexpected overhead costs in the quarterly budget such as building a new factory.

MARKETPLACE The Options Industry Council Make the most of Volatility. Stream a free Webcast from The Options Industry Council. Click to View This Offer...

FEATURED ARTICLE Where Do I Begin? Preliminary Steps for Starting a Business Once you have decided to start your own business you have to figure out where to begin! There are many steps to successfully starting a business, and it can be... Read this article