"Overhead refers to ongoing expenses or business costs while running a business. It varies with nature of business and are very important to understand the profit generation. Sources are rent, which is the cost of using the premises for business agreed with the landlord. Administrative costs include paying salary to the employees, audit fees, legal fees and employee salaries. Utilities like water, gas, electricity, internet and phone services are also sources of overheads. Insurance is incurred to protect the firm from financial loss and types of coverage varies with the loss. Sales and marketing costs include promotional materials, paid advertisements, commissions for sales staff etc. Repair and maintenance of motor vehicles and machinery, such costs include parcel delivery services, equipment leasing, transport services and so on. The machinery and vehicle are to periodically maintained as well as repaired whenever breakdown. More details on this topic can be obtained from the presentation."

Abhijith S

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