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
• Administration and sales office lease
• Administration and sales utilities
• Administration and sales telephones
• Administration and sales travel and entertainment

Similar Terms

Administrative overhead is also known as general and administrative overhead.

Related Questions

What is fixed overhead?
What is indirect overhead?
What is manufacturing overhead?
What is variable overhead?