What is the definition of Sales, General & Administrative (SG&A) ?
- Posted on November 21, 2019
- Financial Terms
- By admin admin
Sales, General & Administrative (SG&A) Costs are those operating costs associated with the sale of goods (not dependent on output like COGS though). This can include things such as:
- Leases on software and computer systems
- Wages
- Any fees paid for patents, royalty payments etc.
SG&A is a crucial part of the Income Statement and is part of Operating Expenses along with Research & Development. It is generally assumed that SG&A is an intrinsic cost of operating and therefore that money set-aside for it cannot be used for other purposes such as paying off debt.
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