Overhead costs are incurred in running a business but are not directly related to manufacturing. These include rent, utilities, insurance, and marketing expenses. While some overhead costs are fixed, others may vary depending on the level of business activity. Managing overhead costs is essential for any business, as it can help to improve profitability and competitiveness.
There are several ways to manage overhead costs. One common approach is carefully tracking expenses and developing a budget for each category. This can help to identify areas where costs can be reduced. Another method is to outsource non-essential functions or activities. This can help save on costs while maintaining quality and service levels.
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