# Overhead

*Accounting & Reporting — Finicade finance glossary*

Overhead is cost that can't be traced directly to a single product — administration, rent, IT, management. It has to be allocated to products by some rule, and the rule chosen changes which products look profitable, which is why activity-based costing exists. Overhead as a share of revenue is the standard measure of whether a company is scaling or merely growing.

**Also known as:** indirect costs, SG&A, operating expenses

**Related terms:** [Fixed vs Variable Costs](https://finicade.com/glossary/fixed-vs-variable-costs), [Operating Margin](https://finicade.com/glossary/operating-margin), [Contribution Margin](https://finicade.com/glossary/contribution-margin), [Cost of Goods Sold](https://finicade.com/glossary/cost-of-goods-sold), [Gross Margin](https://finicade.com/glossary/gross-margin)

Source: https://finicade.com/glossary/overhead