Administrative overhead definition
/What is Administrative Overhead?
Administrative overhead is those costs not involved in the development or production of goods or services. This is essentially all overhead that is not included in manufacturing overhead. Examples of administrative overhead costs are the costs of:
Front office and sales salaries, wages, and commissions
Office supplies
Outside legal and audit fees
Administration and sales office lease
Administration and sales utilities
Administration and sales telephones
Administration and sales travel and entertainment
Administrative overhead is considered a period cost; that is, the benefit of this type of cost does not carry forward into future periods.
Terms Similar to Administrative Overhead
Administrative overhead is also known as general and administrative overhead.