Definition
Overhead cost is the indirect costs associated with running a business that cannot be directly attributed to products. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
A mentor asks, “What is your Overhead cost?” The useful answer is concrete: indirect costs associated with running a business that cannot be directly attributed to products. A slide title is not an answer.
Common mistake
Using Overhead cost as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Overhead
Ongoing business expenses that are not directly tied to producing goods or services.
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Overhead expense
Fixed costs that a business incurs regardless of production levels.
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Outsource provider
External company that provides services or functions for another business.
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Overproduction
Manufacturing more products than can be sold or consumed.
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