How Much Overhead Is Too Much Overhead?

There is a lot of concern about "overhead" in the health and human service field these days. What do we mean when we say "overhead"?

Overhead is an accounting term that refers to all ongoing business expenses not including or related to direct labor, direct materials, or third-party expenses that are billed directly to customers. Overhead must be paid for on an ongoing basis, regardless of whether an organization is has a high or low volume of business. For this reason, calculating overhead is important not just for budgeting purposes, but also for determining how much an organization must . . .