Question

1. What is the general overhead?

Answer 1

A“general overhead” (i.e. regular/indirect overhead) is part of your overall operating expenses — things like rent, utilities, insurance for premises and employees,advertising,legal fees, telephonebills,travel expenditure, benefits,employment taxes and similar things that you have to pay out whether your firm has work or not.

In other words, general overhead expenses are those spent on a regular basis — they are not specific and not chargeable to one particular project. Where as in the case of job overhead, Overhead is unique for a specific project and it will change from project to project.