What is included in selling and administrative expenses?
Operating expenses—also called selling, general and administrative expenses (SG&A)—are the costs of running a business.
They include rent and utility costs, marketing expenditures, computer equipment and employee benefits..
What are examples of administrative expenses?
Typical items listed as general and administrative expenses include:Rent.Utilities.Insurance.Executives wages and benefits.The depreciation on office fixtures and equipment.Legal counsel and accounting staff salaries.Office supplies.
What is considered a selling expense?
Selling expenses are the costs associated with distributing, marketing and selling a product or service. … Marketing costs such as advertising, website maintenance and spending on social media. Selling costs such as wages, commissions and out-of-pocket expenses.
What are selling and distribution expenses?
Selling expenses are those expenses which are incurred to promote sales and service to customers. … Distribution expenses, on the other hand, are those which are incurred for warehousing and storage, packing for goods sent and making the goods available for delivery to customers.
What is the difference between selling and administrative expenses?
General and administrative expenses are all the expenses not associated with selling and not associated with making the product. These expenses include the overhead to run the main office, marketing, executive and support staff, and any distribution costs.
What is considered an administrative expense?
Administrative expenses are expenses an organization incurs that are not directly tied to a specific function such as manufacturing, production or sales. … Administrative expenses include salaries of senior executives and costs associated with general services, for example, accounting and information technology.