Selling, General & Admin Expense

Definition of Selling, General & Admin Expense

Selling, general and administrative expenses (SG&A) are reported on the income statement as the sum of all direct and indirect selling expenses and all general and administrative expenses of a company. There are many factors that go into manufacturing a product, such as a warranty, and therefore SG&A expenses are deducted to generate a net income. SG&A expenses are also monitored to ensure proper cash flow is being managed.

Selling, General & Admin Expense Details