Financial Statements

SG&A (Selling, General & Administrative)

Operating expenses not directly tied to producing a product, including sales, marketing, and administrative costs.

What does SG&A mean?

SG&A captures all the costs of running a business that are not production-related. Selling expenses include sales team salaries, commissions, advertising, and travel. General & administrative expenses include executive compensation, rent, utilities, insurance, legal fees, and accounting costs. SG&A appears on the income statement below gross profit and is subtracted to arrive at operating income (EBIT).