SG&A
Encyclopedia
SG&A is an acronym used in accounting
to refer to Selling, General and Administrative Expenses, which is a major non-production costs presented in an Income statement
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SGA expenses consist of the combined costs of operating the company, which breaks down to:
Accountancy
Accountancy is the process of communicating financial information about a business entity to users such as shareholders and managers. The communication is generally in the form of financial statements that show in money terms the economic resources under the control of management; the art lies in...
to refer to Selling, General and Administrative Expenses, which is a major non-production costs presented in an Income statement
Income statement
Income statement is a company's financial statement that indicates how the revenue Income statement (also referred to as profit and loss statement (P&L), statement of financial performance, earnings statement, operating statement or statement of operations) is a company's financial statement that...
.
SGA expenses consist of the combined costs of operating the company, which breaks down to:
- Selling: Cost of Sales, which includes salaries, advertising expenses, cost of manufacturing, rent, and all expenses and taxes directly related to producing and selling product
- General: General operating expenses and taxes that are directly related to the general operation of the company, but don't relate to the other two categories.
- Administration: Executive salaries and general support and all associated taxes related to the overall administration of the company