![]() ![]() These include human resources, IT, accounting, finance and billing functions, as well as the infrastructure for the business - rent, utilities, and more.Ĭorporate salaries: Human Resources, IT, Accountingĭesks and chairs at corporate headquarters Often, general and administrative expenses are pushed under the moniker of “corporate.” They’re the costs associated with people and infrastructure that isn’t in the field selling things or performing the services, but provide support for all of those activities. Selling, general and administrative (SG&A) expenses include - in addition to the S from selling - general and administrative expenses. The salesperson’s salary, that person’s commission, the cost of any marketing materials they use in the sale, the cost of travel associated with customer visits and delivery costs are all selling expenses. ![]() ![]() Selling expenses include the costs associated with getting orders for the products or services as well as getting those things into the hands of the customer, as opposed to COGS, the explicit costs of producing the product or service. Selling expenses, on the other hand, are indirect costs - the things needed to sell the finished product or service. For a manufacturer, this would include raw materials, the costs associated with getting the materials to the manufacturing site and the wages of the people making it. Selling expenses are an area that should be monitored closely for growth opportunities and cost savings.ĬOGS are all of the direct costs associated with producing or acquiring products for sale.Selling expenses are different from the expenses that make up the cost of goods sold (COGS) or cost of sales.Selling expenses are things like sales collateral, travel to customers or potential customers, advertising costs and the salaries and commissions of sales employees. The S stands for selling expenses, which include the cost to promote, sell and deliver goods and services. SG&A can be compared to revenue to indicate whether the business is spending too much (or too little) on operating costs compared to how much product it’s selling or services it’s providing. East, Nordics and Other Regions (opens in new tab)Įvery business incurs selling, general and administrative expenses (SG&A), which are often a part of the business’s operating expenses. ![]()
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