![]() ![]() General expenses are essential for companies and investors, as they can impact a company's profitability and efficiency. Utilities, such as electricity, gas, and water Rent or lease payments for office or retail space A company incurs these expenses to support its operations, regardless of whether it generates sales. They refer to the costs incurred by a company in its daily operations, not directly tied to producing goods or services. General expenses, or overhead expenses, are a subset of Selling, General, and Administrative (SG&A) expenses. On the other hand, companies with low selling expenses and efficient sales processes may generate higher profits. Companies with high selling expenses may need more revenue to cover these costs, which can negatively impact their bottom line. Selling expenses are essential for companies and investors as they can impact a company's profitability. ![]() Sales representatives' expenses, such as meals and entertainment A company incurs these expenses to generate sales and are directly related to the company's sales activities. Selling expenses are a subset of Selling, General, and Administrative (SG&A) expenses and refer to the costs incurred by a company in selling its products or services. On the other hand, low SG & A expenses indicate that a company is operating more efficiently and has a lower cost structure, which is a positive indicator of future profitability. High SG&A expenses indicate that a company needs to spend more on overhead and may need to generate more revenue to cover these costs. SG&A is an essential metric for investors, as it helps to measure a company's efficiency and the effectiveness of its operating model. A company incurs these expenses regardless of whether they generate or do not generate sales and are typically a significant component of a company's operating expenses. SG&A includes salaries and wages, rent, utilities, advertising, marketing, legal and professional fees, insurance, office supplies, and other overhead costs. Selling, General, and Administrative expenses (SG&A) are the costs incurred by a company in its daily operations, excluding the costs of producing goods or services. What are Selling, General, and Administrative Expenses (SG&A)? ![]()
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