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Applied overhead definitionQuestion What is the definition of "applied overhead"?
Answer Applied overhead, also called absorbed overhead, is the overhead expenses charged to a particular product, contract, job or department.
The purpose is to isolate the profit, or loss, of any unit of activity from the overall performance of the company, so that management can make more accurate incremental decisions. 
Brain Trust contributor:
Author of Instant Profits: Making Your Business Pay
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