administrative overhead

USAGE SUMMARY

The phrase "administrative overhead" is correct and usable in written English.
It is typically used in business or organizational contexts to refer to the costs associated with managing and supporting operations, rather than direct production costs. Example: "The company needs to reduce its administrative overhead to improve overall profitability."

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

56 human-written examples

The first is the much higher administrative overhead costs loaded onto the American health system.

The New York Times

Turner's only condition was that his money be used only minimally for administrative overhead.

The New Yorker

Officials have taken a paring knife to administrative overhead, which means supervision and data collection suffer.

The New York Times

That designation would mean far greater costs for insurance, payroll taxes, and the accompanying administrative overhead.

The New Yorker

Of the Pentagon's $7 billion travel budget, $2 billion is spent on administrative overhead.

The New York Times

Over 50percentt of the settlements go to the attorneys and for administrative overhead.

The New York Times

Nassau's contract with its medical center requires the county to pay infirmary costs plus 21percentt for administrative overhead.

The New York Times

"Public programs like Medicare often deliver care more cost effectively by curtailing administrative overhead and securing better prices from providers.

The Guardian - Business

Under the new law, most plans must spend at least 85 percent of their revenue on medical care, rather than administrative overhead.

The New York Times

On Tuesday, Michael Hinojosa, the district's superintendent, announced that in order to reduce administrative overhead, Townview would also lose five of its seven principals.

The New York Times

To meet the cut, the state said it would reduce money for nonprofit administrative overhead and increase auditing for fraud and overbilling, among other things.

The New York Times

Expert writing Tips

Best practice

When discussing ways to improve efficiency, explicitly state what areas will be affected by reducing the "administrative overhead". For example: Reducing "administrative overhead" will allow us to reinvest in research and development.

Common error

Don't include direct costs like raw materials or production labor when calculating "administrative overhead". "Administrative overhead" refers exclusively to indirect costs like salaries of administrative staff, rent, and utilities.

Linguistic Context

The phrase "administrative overhead" functions primarily as a noun phrase, acting as a subject or object in a sentence. It is often used to describe or quantify indirect costs associated with managing an organization. Ludwig AI's analysis confirms that it is typically used in business or organizational contexts.

Expression frequency: Very common

Frequent in

News & Media

47%

Science

26%

Formal & Business

20%

Less common in

Academia

2%

Encyclopedias

0%

Reference

0%

Ludwig's WRAP-UP

In summary, "administrative overhead" is a very common and grammatically correct noun phrase used to describe the indirect costs associated with managing an organization. As Ludwig AI confirms, it is most frequently found in news, scientific, and formal business contexts. To use the term effectively, remember that it refers specifically to indirect costs like administrative salaries and rent, and does not include direct costs such as raw materials. Alternatives include "management costs" and "operational expenses", depending on the specific context you want to convey.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

management costs

Focuses specifically on the expenses associated with managing an organization or project, omitting other indirect costs.

operational expenses

Broader term that encompasses all the costs associated with running a business, including but not limited to administrative functions.

overhead expenses

A more general term that encompasses all indirect costs of running a business, lacking the specificity of the administrative aspect.

running costs

Highlights ongoing expenses necessary to maintain operations, suitable when emphasizing continuity of expenses.

support costs

Focuses on the expenses related to supporting business operations, possibly excluding executive functions.

general expenses

A very broad term covering various day-to-day operational costs. Less specific than "administrative overhead".

indirect costs

Highlights the costs that are not directly tied to production, applicable in contexts needing financial categorization.

back-office costs

Specifically refers to the costs associated with departments that support the front-end operations of a business.

bureaucratic costs

Emphasizes the costs associated with complex administrative systems or governmental regulations.

maintenance costs

Focuses on the costs needed to maintain current operations, omitting the broader administrative aspects.

FAQs

How to use "administrative overhead" in a sentence?

You can use "administrative overhead" to describe the indirect costs of running a business or organization. For example: "The company is trying to reduce its "administrative overhead" by streamlining its processes."

What are some alternatives to "administrative overhead"?

Some alternatives to "administrative overhead" include "management costs", "operational expenses", or "overhead expenses" depending on the context.

What's the difference between "administrative overhead" and "overhead expenses"?

"Administrative overhead" specifically refers to the costs associated with administrative functions, while "overhead expenses" is a broader term that includes all indirect costs, not just administrative ones.

How can a company reduce its "administrative overhead"?

A company can reduce its "administrative overhead" by automating tasks, outsourcing certain functions, streamlining processes, and reducing unnecessary administrative staff.