What is SG&A? Selling, General & Admin Expense Explained [With Examples]
Автор: Business Basics Essentials
Загружено: 2021-07-23
Просмотров: 9906
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What is SG&A? SG&A is an acronym for Selling, General & Administration Expense. This is the next section of expenses or costs after calculating the Gross Profit. Outside of direct costs directly affecting the product or service which are COGS, SG&A are all other expenses that make the business run day to day.
Examples include rent for the building, employee salaries, office supplies, and more.
Once all the SG&A are calculated and analyzed, then we can calculate the Operating Income, or EBIT (Earnings Before Interest and Tax). After COGS and SG&A expenses are accounted for, then you know the true health of the company before Interest and Tax.
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