Discover the key differences between fixed and variable overhead costs and their impact on business operations. Learn how to ...

Many of the costs a business incurs doing business come down to its ability to deliver a product or service to customers. But not all of them. Companies need to consider overhead costs as well. These ...

Companies can categorize their expenses into two categories: direct expenses and indirect expenses. Direct expenses are those that contribute directly to the product or service. The American Heritage ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Small businesses often start without any workers besides the owners themselves, but successful start-ups may eventually hire employees to take on various day-to-day tasks. Hiring employees affects ...

The overhead ratio measures how much of a company's total revenue is spent on indirect costs. This metric is useful for identifying areas where costs can be reduced to improve profitability. Analyzing ...

Overhead allocation is a source of great disagreement in our industry. Should the allocation be based on job price? On job cost? Per project? Or per field man-hour. We understand the pros and cons of ...