What does SG&A mean? What is the full form of SG&A?
The Full Form of SG&A is Selling, General and Administrative.
Selling, general and administrative expense (SG&A) is reported on the income statement as the sum of all direct and indirect selling expenses and all general and administrative expenses (G&A) of a company. SG&A, also known as SGA, includes all the costs not directly tied to making a product or performing a service. That is, SG&A includes the costs to sell and deliver products and services and the costs to manage the company.
KEY TAKEAWAYS
- Selling, general, and administrative expenses (SG&A) are included in the income statement in the expense section.
- SG&A is not assigned to a specific product, and therefore not included in the cost of goods sold (COGS).
- They are incurred as part of the day-to-day business operations.
- Managers target SG&A when a cost-reduction strategy is implemented because they do not affect the manufacturing or production of goods directly.
SG&A
means
Selling, General and Administrative
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