What are general and administrative expenses?
General and administrative expenses are commonly referred to as “G&A expense”. G&A expenses are part of operating expenses and include all costs that are not cost of goods sold or selling expenses. G&A expense is basically the “catch all bucket” for all other costs that are incurred in the normal course of business.
G&A expense is typically fixed, meaning that G&A expense does not fluctuate with the company’s revenues. G&A is typically incurred regardless of whether or not the company is selling product or services to its customers. Types of G&A expense include rent, utilities, executive team compensation, back office employee compensation, insurance, computer and supplies, and depreciation on back-office buildings and equipment.
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