General overhead refers to costs that:

General overhead refers to the expenses incurred by a business that cannot be directly attributed to specific projects, products, or services. These costs are essential for the overall operation of the business but do not align with a single line item or project. Examples of general overhead include utilities, rent, administrative salaries, and office supplies. Such costs are spread across multiple projects or activities since they support the overall infrastructure needed to conduct business.

By recognizing that general overhead encompasses costs that cannot be specifically identified with a single project, businesses can make more informed decisions regarding pricing, budgeting, and financial forecasting. This understanding is critical for project managers and financial analysts to assess the total cost of a project and ensure adequate funding and resource allocation.