Companies can categorize their expenses into two categories: direct expenses and indirect expenses. Direct expenses are those that contribute directly to the product or service. The American Heritage ...

Many of the costs a business incurs doing business come down to its ability to deliver a product or service to customers. But not all of them. Companies need to consider overhead costs as well. These ...

Restaurants are businesses with high overhead costs and a high potential for waste. The two largest expense categories are labor and food and beverage. Food and beverage expenses are categorized on ...

The overhead ratio measures how much of a company's total revenue is spent on indirect costs. This metric is useful for identifying areas where costs can be reduced to improve profitability. Analyzing ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Costs in a business are traditionally divided into operating and administrative categories. Both are necessary for the company, but operating costs are closely tied to specific products and services ...