This document provides contact information for four office locations of a company called Altacit in Chennai, Bangalore, Coimbatore, and Hyderabad. It also includes their email and website. The overhead is attributed to Parvathi. V.

1. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
Road No 1, Banjara Hills,
Hyderabad - 500034.
Tel: +91 - 40 - 6050 6009
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
OVERHEAD
By
Parvathi. V

2. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
Road No 1, Banjara Hills,
Hyderabad - 500034.
Tel: +91 - 40 - 6050 6009
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Definition
 Overhead is those costs required to run a business, but which
cannot be directly attributed to any specific business activity,
product, or service.
 In business, overhead or overhead expense refers to an ongoing
expense of operating a business; it is also known as an "operating
expense". Overheads are the expenditure which cannot be
conveniently traced to or identified with any particular cost unit.
 However, overheads are still vital to business operations as they
provide critical support for the business to carry out profit
making activities.

3. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
Road No 1, Banjara Hills,
Hyderabad - 500034.
Tel: +91 - 40 - 6050 6009
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

4. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
Road No 1, Banjara Hills,
Hyderabad - 500034.
Tel: +91 - 40 - 6050 6009
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Administrative overheads

5. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
Road No 1, Banjara Hills,
Hyderabad - 500034.
Tel: +91 - 40 - 6050 6009
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
 Administrative overheads such as utilities, strategic planning, and various
supporting functions. These costs are treated as overheads due to the fact
that they aren't directly related to any particular function of the
organization nor does it directly result in generating any profits. Instead,
these costs simply take on the role of supporting all of the business' other
functions.
 Employee salaries
 This includes mainly monthly and annual salaries that are agreed upon.
They are considered overheads as these costs must be paid regardless of
sales and profits of the company. In addition, salary defers from wage as
salary is not affected by working hours and time, therefore will remain
constant.

6. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
Road No 1, Banjara Hills,
Hyderabad - 500034.
Tel: +91 - 40 - 6050 6009
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
 Office equipment and supplies
 This includes office equipment such as printer, fax machine, computers,
refrigerator, etc.They are equipments that do not directly result in sales and
profits as they are only used for supporting functions that they can provide to
business operations. However, equipments can vary between administrative
overheads and manufacturing overheads based on the purpose of which they
are using the equipments. For example, for a printing company a printer
would be considered a manufacturing overhead.

External legal and audit fees
 This includes the cost of hiring external law and audit firms on behalf of the
company.This would not apply if company has own internal lawyers and audit
plans. Due to regulations and necessary annual audits to ensure a satisfactory
work place environment, these costs often cannot be avoided.Also, since these
costs do not necessarily contribute directly to sales, they are considered as
indirect overheads. Although in most cases these costs can sometimes be
avoided and reduced.

 .

7. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
Road No 1, Banjara Hills,
Hyderabad - 500034.
Tel: +91 - 40 - 6050 6009
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
 Company cars
 Many companies provide usage of company cars as a perk for their employees. Since
these cars do not contribute directly to sales and profits, they are considered an
overhead.

 Travel and entertainment costs
 This will include company-paid business travels and arrangements.As well as
refreshments, meals, and entertainment fees during company gatherings.These overhead
motivate workers to become more productive and efficient, the majority of economists
agree that these costs are not direct contributes to sales and profits, therefore shall be
categorized as an administrative overhead.

8. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
Road No 1, Banjara Hills,
Hyderabad - 500034.
Tel: +91 - 40 - 6050 6009
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Manufacturing overheads (Production)

9. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
Road No 1, Banjara Hills,
Hyderabad - 500034.
Tel: +91 - 40 - 6050 6009
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
 It is known as production or factory overhead, manufacturing overhead involves
the costs that are incurred as part of the actual manufacturing process.Typically,
this form of overhead costs does not include costs such as direct labor or the
materials that are actually used in the production process. This means that
manufacturing overhead cost is concerned with those expenses that are
considered indirect, but still related to production.

10. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
Road No 1, Banjara Hills,
Hyderabad - 500034.
Tel: +91 - 40 - 6050 6009
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
 Manufacturing overheads are categorized within a factory or office in which
the sale takes place.
 While administrative overheads is typically categorized within some sort of
back-office or supporting office.
 Employee salaries
 Although the general concept is identical to the example under administrative
overheads, the key difference is the role of the employee:
 In the case of manufacturing overheads, employees would have roles such as
maintenance personnel, manufacturing managers, materials management staff,
and quality control staff. It would also include the set wages for janitorial staff
members. Once again, the key difference lies in the nature of their respective
jobs and the physical location in which their jobs are carried out.
. Difference between manufacturing overheads and
administrative overhead

11. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
Road No 1, Banjara Hills,
Hyderabad - 500034.
Tel: +91 - 40 - 6050 6009
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
 Depreciation of assets and equipment
 This refers to the reduction in value of equipments as it becomes older and
more obsolete. For example, if a printer has a potential useful life span of 5
years, the amount that it can be sold for will decrease each year Therefore,
this value in depreciation is calculated as a manufacturing overhead. Moreover,
this also applies to vehicles as they tend to depreciate in value significantly
after the first year..
 PropertyTaxes on Production Facilities
 Every single property unless government owned is subject to some form of
property tax.Therefore, the taxes on production factories are categorized as
manufacturing overheads as they are costs which cannot be avoided nor
cancelled. In addition, property taxes do not change in relation to the
business's profits or sales and will likely remain the same unless a change by
the government administration.

12. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
Road No 1, Banjara Hills,
Hyderabad - 500034.
Tel: +91 - 40 - 6050 6009
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
selling and distribution
overhead
 Selling overheads constitute “the cost incurred in promoting sales and retaining
customers”,
 While the distribution overheads constitute “the cost of the process which begins
with making the packed product available for dispatch and ends with making the
reconditioned returned empty packages available for re-use.”
 Selling and distribution overheads, therefore, include the following:
 Selling overheads
(a) Indirect material: This includes the cost of printing and stationary, mailing
literatures, catalogues, price lists etc.
(b) Indirect labour: This includes the salaries, commission etc. of salesmen,
technical representatives, sales manager etc.

13. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
Road No 1, Banjara Hills,
Hyderabad - 500034.
Tel: +91 - 40 - 6050 6009
EMAIL
info@altacit.com
WEBSITE
www.altacit.com

(c) Indirect expenses: They include advertising, bad debts, rent of the showroom,
insurance of showroom, collection charges, travelling and entertainment expenses,
expenses of branch establishments, sales office expenses, and fees of directors who pay
attention to sales.
 Distribution overheads
(a) Indirect material: This includes the cost of packaging cases; oil, grease, spare
parts used in maintenance of delivery vehicles.
(b) Indirect labour: This includes wages of packers, van drivers, dispatch clerks etc.
(c) Indirect expenses: They include godown expenses including rent, insurance,
freight, carriage outwards and other transport charges, depreciation and running
expenses of delivery vans.

14. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
Road No 1, Banjara Hills,
Hyderabad - 500034.
Tel: +91 - 40 - 6050 6009
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Differences between operating
expenses and overhead expenses
 Several types of expenses affect profits for a business including equipment costs, inventory and
facilities costs. There are two main categories for all business expenses: operating expenses and
overhead expenses. The costs that fall into each category depend on the nature of the business.
Essentially, operating expenses are directly related to production, while overhead expenses are the
costs to run the business.
 Operating expenses include materials, labor and machinery used to make a product or deliver a
service. For example, a soda bottler has the cost of aluminum for cans, machinery costs and labor
costs.An easy way to determine the operating expenses for a particular business is to think about the
costs that are eliminated by shutting down production for a period of time. For example, the soda
bottler still has to pay the facility lease payments, but all costs related to the actual making of the
soda .
 Overhead expenses represent costs that are more static and relate to general business functions, such
as paying accounting personnel and facility costs. In the scenario above with the soda bottler, the
facility lease payments are still owed even if no current production takes place within the facility.
Therefore, facility costs are overhead expenses. Likewise, the soda bottler still incurs other business
expenses such as insurance and administrative and management salaries. Overhead expenses also
include marketing and other expenses incurred to sell the product. For the soda bottler, this includes
commercial ads, signage in retailer aisles and promotional costs. These costs still remain if
production is shut down for a short period of time.

15. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
Road No 1, Banjara Hills,
Hyderabad - 500034.
Tel: +91 - 40 - 6050 6009
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Fixed Overhead and Variable
Overhead
 What is fixed overhead?
 Fixed overhead is a set of costs that do not vary as a result of changes in
activity. These costs are needed in order to operate a business. One should
always be aware of the total amount of fixed overhead costs that a business
incurs, so that management can plan to generate a sufficient amount of
contribution margin from the sale of products and services to at least offset
the amount of fixed overhead. Otherwise, it is impossible to generate a
profit.
 Examples of fixed overhead costs that can be found throughout a business
are:
 Rent
 Insurance
 Office expenses
 Administrative salaries
 Depreciation and amortization

16. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
Road No 1, Banjara Hills,
Hyderabad - 500034.
Tel: +91 - 40 - 6050 6009
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
 Examples of fixed overhead costs that are specific to a production
area (and which are usually allocated to manufactured goods) are:
 Factory rent
 Utilities
 Production supervisory salaries
 Normal scrap
 Materials management staff compensation
 Quality assurance staff compensation
 Depreciation on production equipment
 Insurance on production equipment, facilities, and inventory

17. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
Road No 1, Banjara Hills,
Hyderabad - 500034.
Tel: +91 - 40 - 6050 6009
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
 What is variable overhead?
 Variable overhead is those manufacturing costs that vary roughly in
relation to changes in production output.The concept is used to
model the future expenditure levels of a business, as well as to
determine the lowest possible price at which a product should be
sold.

 Examples of variable overhead are:
 Production supplies
 Equipment utilities
 Materials handling wages

18. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
#1533, Trichy Road,
Coimbatore – 641018.
Tel: +91 - 422 - 6552921
HYDERABAD
Suite 132 & 133,
Level 1, Midtown,
Road No 1, Banjara Hills,
Hyderabad - 500034.
Tel: +91 - 40 - 6050 6009
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Conclusion
It’s almost impossible to run a business
without some overhead. But these operating
costs can be minimized or eliminated in many
cases, leaving you with more profits in your
pockets.A business with streamlined operating
expenses will have the best possible chance for
success.
THANKYOU