Overhead expenses are the ongoing costs of running a business that are not directly tied to producing goods or services. These expenses include items like rent, utilities, salaries for administrative staff, and office supplies. They are essential for maintaining operations but do not directly contribute to revenue generation. Managing overhead expenses is crucial for a business's profitability. By keeping these costs in check, companies can improve their financial health and allocate more resources to areas like marketing or product development. Understanding and controlling overhead helps businesses remain competitive and sustainable in the long run.