Overhead (also known as business process overhead or simply as operating cost) is the recurring expense which is related to the operation of a business. This comes in several forms, each instance of which can be reduced or even eliminated, but always at a cost to the production or services provided by the company. The manipulation of the overhead variable will necessarily demand a cost/benefit analysis before the change is implemented.
This is no different for the particular reduction in overhead which is discussed in this book, but to have a better sense of which costs can easily be reduced and which can rarely be reduced, a discussion of the categories and examples of overhead follows.
