hi,
Overhead, also known as indirect expenses, is the cost of running a business. Without overhead expenditures, a company would not be able to function, but overhead does not contribute directly to the generation of profits. In a simple distinction between indirect and direct expenses, the desk an employee sits at is considered an indirect expense, while the materials for the product the employee fabricates at the desk are a direct expense. Without the desk, the employee cannot work, but the desk does not produce profits, while the materials the employee works with to produce a product do generate a profit