The Business Case Dictionary

Selling, General, & Administrative (SG&A)

Selling, general, and administrative (SG&A) expenses are the costs incurred by a business in the course of selling its products or services, as well as the general overhead costs of running the business. They include expenses such as salaries, marketing and advertising costs, rent, utilities, and office supplies.

SG&A expenses are a key component of a business's operating expenses, and they are typically reported as a separate line item on the income statement. They are typically classified as either fixed or variable, depending on whether they remain constant or fluctuate with changes in the level of production or sales.

SG&A expenses are an important factor in a business's profitability, as they represent the ongoing costs of running the business. It is important for businesses to carefully manage their SG&A expenses in order to maintain a healthy profit margin. This may involve finding ways to reduce expenses, negotiating better prices for supplies or services, or increasing efficiency in order to lower SG&A costs.

SG&A expenses are one of the features of the Financial Analysis Templates.