difference between overhead and oncost
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Overhead expenses are other costs not related to labor, direct materials, or production. ... The cost of power can change based on usage. If the soda company increases production, it will have to pay more for electricity. Overhead expenses also include marketing and other expenses incurred to sell the product.
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Operating expenses are the result of a business's normal operations, such as materials, labor, and machinery involved in production. Overhead expenses are what it costs to run the business, including rent, insurance, and utilities. Operating expenses are required to run the business and cannot be avoided
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