What is overhead costs in business?

[Trush Jodie]

In the business world, we always hear about overhead costs. Are they different from the cost of production? What are overhead costs and what is it's bearing on the business process and growth?

Can someone explain what overhead costs is?

 

[Fidelia]

Overhead costs are costs that are just needed to run a business. They are not tied to production. Example is salary payment.