Overhead

Definition:

Expenses incurred in the daily operation of a business such as rent, salaries, and insurance, which are not directly related to the making of a product or a service.

Examples:

Many small companies find that on-line sales are much more profitable, because they don’t have to worry about the overhead associated with maintaining a brick-and-mortar retail store.

One of the things potential investors look for in a company is a reasonable overhead margin, which shows that the managers have an eye on the budget.