Overhead (business)
Etymology
An American business term picturing these expenses as hanging “over the head” of the enterprise, a fixed weight carried above the actual work of production. The figure treats them as costs that loom regardless of output, distinct from the materials that go directly into each item.
noun · /OH-vur-hed/
The ongoing costs of running a business that aren’t tied to making any specific product.
What it names
The baseline cost of simply keeping the lights on — rent, insurance, admin salaries — that must be covered before a single sale earns anything.
Example
By working from home, the consultant kept her overhead low enough to undercut larger firms.
Related idea
Distinguish direct costs, which rise and fall with each unit made; overhead stays roughly constant whether you sell one item or a thousand, which is why high-overhead businesses need volume to survive.
adverb · /OH-vur-hed/
Above one’s head; in the space above.
What it names
the region directly above
Example
A plane passed overhead; store your bag in the overhead bin.
Related idea
The literal ‘over the head’ from which the business-cost sense was drawn.