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Overhead

Indirect costs related to production or service delivery.

Definition

Overhead Indirect costs related to production or service delivery.

Definition

Overhead (also called fringe or burden) includes indirect costs associated with production or service delivery, such as employee benefits, supervision, and facilities costs for operational staff. Overhead is applied as a percentage to direct labor costs.

Also Known As

  • Fringe
  • Burden

Related Terms

  • G&A

    General and Administrative expenses allocated across all contracts.

  • Indirect Costs

    Costs not directly attributable to a specific contract.

  • Wrap Rate

    Fully loaded labor rate including all indirect costs and profit.

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