Dreamline Proposal Template
- Selling: The sum of all direct and indirect selling expenses, which includes salaries (excluding those related to the production itself which are cost of goods sold), advertising expenses, rent, and all expenses and taxes related to selling product;
- General: General operating expenses and taxes that are directly related to the general operation of the company, but do not relate to the other two categories;
- Administration: Executive salaries and general support and all associated taxes related to the overall administration of the company.
Overhead is an accounting term that refers to all ongoing business expenses not including or related to direct labor, direct materials or third-party expenses that are billed directly to customers. A company must pay overhead on an ongoing basis, regardless of whether the company is doing a high or low volume of business. It is important not just for budgeting purposes but for determining how much a company must charge for its products or services to make a profit.Read more: Overhead