Frequent Question: What Are General Administrative Expenses?

General and Administrative (G&A) expenses are the day-to-day costs a business must pay to operate, whether or not it manufactures products or generates revenue. Typical G&A expenses include rent, utilities, insurance payments, and wages and salaries for administrative and management staff other than salespeople.

What are considered administrative expenses?

Administrative expenses are expenses an organization incurs that are not directly tied to a specific core function such as manufacturing, production, or sales. These overhead expenses are related to the organization as a whole, as opposed to individual departments or business units.

How do you find general and administrative expenses?

General and administrative costs typically appear on a company’s income statement for a given period directly below the cost of goods sold (COGS). The organization then subtracts the COGS from net revenue to find the gross margin.