Overhead expenses refer to the ongoing costs of running a business that are not directly tied to producing goods or services. These costs include items like rent, utilities, salaries for administrative staff, and office supplies. Understanding overhead is crucial for businesses to manage their budgets effectively and ensure profitability. Managing overhead expenses helps businesses maintain financial health. By keeping these costs in check, companies can allocate more resources to areas like marketing or product development. This balance is essential for long-term success and sustainability in a competitive market.