Overhead expenses can be fixed, meaning they are the same from month to month, or variable, meaning they increase or decrease depending on the business's activity level. For example, a business’s rent payment may be fixed while shipping and mailing may be variable.
Overhead expenses can also be semi-variable, meaning that the company incurs some portion of the expense no matter what, and some portion depends on the level of business activity. For example, many utility costs are actually semi-variable with a component existing as a base charge and the remainder of the charges being based on usage.
Overhead can also be general, referred to as company overhead, meaning that it applies to the company's operations as a whole. A company can allocate overhead to a specific project or department as well. For example, a service-based business that operates in a traditional white-collar office setting has general overhead expenses, such as rent, utilities and insurance, while it may have allocated overhead based on the activities completed within each department, such as printing or office supplies.
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