Overhead

Overhead is that part of an organization's intake or expenditure which goes to simply maintaining the organization, and not to profit, suppliers, charities, etc. Example: If the Red Cross takes in $50 million in donations and distributes $20 million to various charities, then it has $30 million in overhead. This is not an outrageous percentage for a non-profit, by the way. Another example: A manufacturing business that makes $100 per day and spends $45 on raw materials, tooling, maintenance, manufacturing labor etc. and keeps $25 in profit probably has $30 of daily overhead. This would go to places like the boss's secretary's salary, coffee for the break room, toilet paper for the john, etc. etc.

When I'm doing "overhead," quite simply, it means that I'm not writing code--and I'm still getting paid.  My first week or two on the job, all the paperwork I have to fill out and introductory meetings and seminars get logged under overhead.  All the compliance training HR makes me do is also overhead.

But wait, there's more!  When I have to call one of our tech support lines to fix one of my Unix accounts or get something else fixed, that's overhead.  When the CD-ROM drive on my work computer blows up, the entire afternoon I spend trying to fix it and find a new one is overhead.  When I have to go down the hall to use another office's copy machine because we don't have one, that's overhead.

I LOVE overhead.

O`ver*head" (?), adv.

Aloft; above; in or attached to the ceiling or roof; in the story or upon the floor above; in the zenith.

While overhead the moon Sits arbitress. Milton.

Also used adjectively; as, an overhead crane, gear, etc.

Overhead engine, a vertical steam engine in which the cylinder stands above the crank. -- Overhead work, a general term in manufactories for countershafting and gearing, when overhead.

© Webster 1913.