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overhead

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adverb over·head \ˌō-vər-ˈhed\
Updated on: 26 Jul 2017

Definition of overhead

  1. :  above one's head :  aloft

Examples of overhead in a Sentence

  1. A chandelier hung directly overhead.

  2. People were making noise in the balcony overhead.

First Known Use of overhead

15th century


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overhead

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adjective over·head \ˈō-vər-ˌhed\

Definition of overhead

  1. 1a :  operating, lying, or coming from aboveb :  having the driving part above the part driven valves operated by an overhead camshaft

  2. 2 :  of or relating to overhead overhead costs

Recent Examples of overhead from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'overhead.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of overhead

1682


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overhead

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noun over·head \ˈō-vər-ˌhed\

Definition of overhead

  1. 1 :  business expenses (such as rent, insurance, or heating) not chargeable to a particular part of the work or product

  2. 2 :  ceiling; especially :  the ceiling of a ship's compartment

  3. 3 :  a stroke in a racket game made above head height :  smash

Examples of overhead in a Sentence

  1. Her company has very little overhead.

Recent Examples of overhead from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'overhead.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of overhead

1907


Financial Definition of OVERHEAD

overhead

What It Is

Overhead refers to the ongoing operating expenses necessary to running a business, but are not attributed to a specific business activity.  Also referred to as "indirect costs."

How It Works

Generally, overhead expenses include expenses that do not directly generate revenues, such as labor and materials, but are needed to maintain the business operations.  Overhead expenses include expenses such as accounting, advertising, depreciation, insurance, interest, legal, rent, repairs, office supplies, taxes, information and communications, utilities, research and development, customer relations and service, and travel.  These overhead expenses are listed on the company's income statement.

Why It Matters

Overhead costs are considered fixed costs, that is, they do not rise or fall directly with the cost of goods sold.   Overhead costs are important to monitor and control.  Since they are not directly related to revenues, they can become a larger share of the total expenses and burden a company, soaking up net income and profits.


OVERHEAD Defined for English Language Learners

overhead

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adverb

Definition of overhead for English Language Learners

  • : above someone's head : in the sky or space above someone

overhead

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noun

Definition of overhead for English Language Learners

  • : costs for rent, heat, electricity, etc., that a business must pay and that are not related to what the business sells


OVERHEAD Defined for Kids

1

overhead

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adverb over·head \ˌō-vər-ˈhed\

Definition of overhead for Students

  1. :  above someone's head :  in the sky or space above someone A chandelier hung directly overhead.


2

overhead

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adjective over·head \ˈō-vər-ˌhed\

Definition of overhead for Students

  1. :  placed in the space above someone an overhead light


3

overhead

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noun over·head \ˈō-vər-ˌhed\

Definition of overhead for Students

  1. :  the general expenses (as for rent or heat) of a business


Law Dictionary

overhead

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noun over·head \ˈō-vər-ˌhed\

Legal Definition of overhead

  1. :  business expenses (as rent or insurance) not chargeable to a particular part of the work or product



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