Measures the allocation and management of indirect costs within the business.

What it Measures ?

How much of our income goes to running costs.

Relevant StakeHolders 

Finance Manager, COO

In-depth Use Case / Real-world Example

Overhead Cost Analysis tracks the indirect costs of running a business, such as rent, utilities, and administrative salaries. For example, if overhead costs total ₹300,000 and total production costs are ₹1,000,000, the overhead cost ratio is 30%. Reducing overhead costs can improve profitability and operational efficiency.