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Selling, General, and Administrative Expenses

What Are Selling, General, and Administrative Expenses (SG&A)?

The category of selling, general, and administrative expenses (SG&A) in a company’s income statement includes all general and administrative expenses (G&A) as well as the direct and indirect selling expenses of the business. This line item includes nearly all business costs not directly attributable to making a product or performing a service. SG&A includes the costs of managing the company and the expenses of delivering its products or services.

Key Takeaways

  • Selling, general, and administrative expenses (SG&A) are included in the expenses section of a company’s income statement.
  • SG&A expenses are not assigned to a specific product and therefore are not included in the cost of goods sold (COGS).
  • SG&A expenses are incurred in day-to-day business operations and may be required as part of operating any type of…

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