Selling, general, and administrative expense is basically a fancy name for operating costs. Read this article to learn what is included in SG&A expense, and why it is a significant number.
What is the definition of selling, general and administrative expenses?More specifically, the SG&A expense include all sorts ofexpensesthat a company makes to support its operations and pay its employees. Hence, SG & A include salaries,wages, and the associated taxes, utilities, marketing, advertis...
SG&A is part of a company’s operating expenses, and some companies, especially smaller firms, use the terms SG&A and operating expenses interchangeably. However, U.S. accounting standards treat R&D as a separate operating expense that’s not part of SG&A. Depreciation is typically reported as...
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Selling, general, and administrative expenses(SG&A) also consist of a company's operating expenses that are not considered direct costs of production or cost of goods sold. In other words, SG&A includes all non-production costs. While this is typically synonymous with operating expenses, often com...
Above-the-line costs are important to differentiate from other costs because they relate to profit margin. That is, the relationship of sales or revenue to costs associated with those sales. Analysts and investors can take a quick look at that relationship for an idea of a company's performanc...