Thinking about how to increase operating profit without increasing selling expenses is important in running a company. 1-2. General administrative expenses General and administrative expenses are all expenses necessary for the general administrative operations of the company. It may be difficult to understand even if it is call general administrative work. Simply put, it is a business that is not directly relat to sales. For example, a person who works in accounting at a company may be calculating the money earn from sales, but he or she is not directly involv in sales.
Selling General And Administrative
Also, there are people who play various roles in the company, such as the staff who clean the company and the personnel who manage the employees. The salaries paid to such people fall under general administrative expenses. In addition, rent, utilities, etc. are treat as general administrative expenses. General and administrative expenses also Armenia WhatsApp Number List have a significant impact on the company’s operating profit. Rucing general and administrative expenses will increase operating income, so it is important to determine how much profit can be generat with low general and administrative expenses. 1-3. Reasons for combining sales, general and administrative expenses There is a reason why they are collectively describ as selling, general and administrative expenses.
Expenses Are Separate Expenses
Because there are elements that are relat to each other. Both selling expenses and general and administrative expenses have in common that they are elements directly relat to operating income. In addition, what is treat as selling expenses and general administrative expenses such as employee salaries is similar. Since there are many SG Phone List common items, they are group together as selling, general and administrative expenses. It is often record as selling, general and administrative expenses on the income statement, and there are many cases where they are consider together as selling, general and administrative expenses. Note, however, that selling, general and administrative expenses are different in nature as expenses.