"The costs related to daily business activities. Overheads support overall revenue generating activities of the business. Expenses vary with nature of the business. They are important to understand how much a company must charge for goods or services for generating profit. Mainly there are three types: fixed, variable and semi-variable. The costs which remain intact every month and won't change based on business activities are fixed overheads, examples are rent, salary, government license, property taxes etc. Variable are ones which vary with business activity and can decrease or increase with business level, examples are shipping charges, marketing charges, legal expenses etc. Semi-variable have characteristics of both fixed and variable. A business can face some costs at any time that can fluctuate with business activities, for example sales commission, vehicle usage etc. It is calculated by accountants for budget preparation by using common accounting tools. More details can be obtained from the presentation."

Abhijith S

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