ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -However, to be clear about the concept of selling general and administrative expenses, one must also be aware of the items which are not included in these expenses. For instance, research and development costs, financing costs, interest income, and interest expenses are not a part of SG&A.

Detailed explanation-2: -Operating expenses-also known as selling, general and administrative expenses (SG&A)-are the costs of doing business. They include rent and utilities, marketing and advertising, sales and accounting, management and administrative salaries.

Detailed explanation-3: -Examples of general and administrative (G&A) expenses include building rent, consultant fees, depreciation on office furniture and equipment, insurance, supplies, subscriptions, and utilities.

Detailed explanation-4: -Organizations may choose to include consulting and legal fees as an administrative expense as well. However, research and development (R&D) costs are not considered administrative expenses.