What does company overhead typically exclude?

Company overhead typically refers to the ongoing expenses necessary to run a business that are not directly tied to the production of goods or services. It encompasses a range of costs, including general operational expenses, salaries of administrative staff, and associated utilities and rent for office space. However, project-specific costs represent expenditures directly linked to individual projects, such as materials, labor specific to that project, and other variable expenses that fluctuate based on the scope and duration of the work. These costs are considered separate from overhead because they can change from one project to another, whereas overhead remains more constant across different projects. Therefore, understanding that project-specific costs do not fall under the umbrella of company overhead is key to grasping the distinction between regular operating expenses and those tied to particular projects.