{"id":22649,"date":"2020-04-10T18:48:32","date_gmt":"2020-04-10T18:48:32","guid":{"rendered":"https:\/\/www.xotels.com\/uncategorized\/overhead-costs\/"},"modified":"2024-12-23T09:21:18","modified_gmt":"2024-12-23T09:21:18","slug":"overhead-costs","status":"publish","type":"post","link":"https:\/\/www.xotels.com\/en\/glossary\/overhead-costs","title":{"rendered":"Overhead Costs"},"content":{"rendered":"<p>What is the meaning \/ definition of Overhead Costs in the <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/hospitality-industry\">hospitality industry<\/a>?<\/p>\n<p>The term Overhead Costs, also called overhead expenses, refers to the <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/overhead-costs\">indirect costs<\/a> which occur when operating a business, while excluding costs directly related to the manufacturing of a product or delivery of a service. Overhead Costs do not directly contribute to the generating of revenue. It refers to all non-labor expenses required to operate your business. Overhead Costs can be fixed, variable or semi-variable.<\/p>\n<p style=\"text-align: left;\">You can reduce your Overhead Costs by renting equipment, reducing utilities and renegotiating rent contracts. Overhead Costs are all costs on the income statement except for direct labor, direct materials, and direct expenses.<\/p>\n<p style=\"text-align: left;\">Examples of Overhead Costs are accounting fees, advertising, insurance, interest, legal fees, labor burden, rent, repairs, supplies, taxes, telephone bills, travel expenditures, and utilities.<\/p>\n<p style=\"text-align: justify;\"><strong>See Also:<\/strong><\/p>\n<ul>\n<li><a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/operating-costs\">Operating Costs<\/a><\/li>\n<li><a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/fixed-costs\">FC \u2013 Fixed Costs<\/a><\/li>\n<li>VC \u2013 Variable Costs<\/li>\n<li>P&amp;L \u2013 <a class=\"glossary-only-link\" href=\"https:\/\/www.xotels.com\/en\/glossary\/profit-and-loss-statement\">Profit and Loss Statement<\/a><\/li>\n<\/ul>\n<p><strong>Synonyms:<\/strong><\/p>\n<ul>\n<li>Indirect costs<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>What is the meaning \/ definition of Overhead Costs in  [&#8230;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[9,45],"tags":[],"class_list":["post-22649","post","type-post","status-publish","format-standard","hentry","category-glossary","category-o"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Overhead Costs Definition \/ Meaning - Xotels<\/title>\n<meta name=\"description\" content=\"Definition: The term Overhead Costs, also called overhead expenses, refers to the indirect costs which occur when operating a business, while excluding costs directly related to the manufacturing of a product or delivery of a service.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.xotels.com\/en\/glossary\/overhead-costs\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Overhead Costs Definition \/ Meaning - Xotels\" \/>\n<meta property=\"og:description\" content=\"Definition: The term Overhead Costs, also called overhead expenses, refers to the indirect costs which occur when operating a business, while excluding costs directly related to the manufacturing of a product or delivery of a service.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.xotels.com\/en\/glossary\/overhead-costs\" \/>\n<meta property=\"og:site_name\" content=\"Xotels\" \/>\n<meta property=\"article:published_time\" content=\"2020-04-10T18:48:32+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-12-23T09:21:18+00:00\" \/>\n<meta name=\"author\" content=\"Patrick Landman\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@xotels\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Patrick Landman\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":[\"Article\",\"BlogPosting\"],\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/glossary\\\/overhead-costs#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/glossary\\\/overhead-costs\"},\"author\":{\"name\":\"Patrick Landman\",\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/#\\\/schema\\\/person\\\/f51e882bd553ae1b905fc0214cdca6f5\"},\"headline\":\"Overhead Costs\",\"datePublished\":\"2020-04-10T18:48:32+00:00\",\"dateModified\":\"2024-12-23T09:21:18+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/glossary\\\/overhead-costs\"},\"wordCount\":156,\"publisher\":{\"@id\":\"https:\\\/\\\/www.xotels.com\\\/en\\\/#organization\"},\"articleSection\":[\"Hotel Terminology &amp; 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