Capterra Glossary
Selling General and Administrative (SG&A) Expenses
Selling general and administrative (SG&A) expenses are the costs of running a business apart from production and sales costs. SG&A costs include:
Rent
Salaries
Administrative expenses
Marketing costs
When balancing budgets and managing finances, organizations often calculate SG&A costs separately from production and sales costs because many of these costs are 'fixed,' and a business needs to pay them regardless of how many products it produces or services it sells. For example, an organization has to pay salaries to employees, or the business would close.
What Small and Midsize Businesses Need to Know About Selling General and Administrative (SG&A) Expenses
SMBs might want to use the SG&A method to identify ways to save money. That's because it's an easy way to reduce operational costs without impacting sales and production processes.
Related Terms
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- Financial Planning and Analysis (FP&A)
- Hedge Fund
- Gateway
- Record to Report (R2R)
- ROIT (Return on Information Technology)
- Chief Revenue Officer (CRO)
- SAC (Subscriber Acquisition Cost)
- ROE (Return on Equity)
- Tokenization
- Net Present Value
- Fintech
- Financial Management System (FMS)
- Business Capability Modeling