SG&A

Selling, General & Administrative Expense (SG&A) is the sum of every direct and indirect selling expenses along with the general and administrative expenses of a company. It can be seen reported on the company’s income statement. Direct selling expenses can be linked directly to a specific unit while indirect selling expenses cannot be directly linked but are proportionally allocated to all units sold in a given time period. Examples of direct selling expenses are: advertising, warranty, and credit expenses. Examples of indirect selling expenses are: postal charge, telephones, and interest. Meanwhile, general & administrative expenses are the wages of non-sale personnel, lightings, heat, and rent.

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