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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.

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