Also, selling, general and administrative (SG&A) expenses, an item of income statement (SOI) that comprises all direct and indirect selling costs, operational overhead costs, as well as administrative expenses that do not relate to production and sales- that is, all expenses not directly related to revenue generation.
SG&A expense often includes all expenses with general nature such as rent, utilities, legal fees and insurance (all types of general expenses). Selling costs can also include advertising, sales commissions, and promotional costs (selling expenses), and administrative costs such as salaries for staff and executives, as well as fees or salaries for ancillary services such as, accounting, IT, or legal affairs.
SG&A expenses are unlike the cost of goods sold (COGS) that represents the actual cost incurred to produce and deliver products and services (e.g., raw materials, shipping costs and taxes, etc).
Comments