G&A Expenses
G&A expenses are central management and support costs not directly assigned to production or selling. Learn common items, an example, and analysis risks.
Compare SG&A, G&A, operating expenditure, cost of sales, and income-tax expense without mixing different income-statement classifications.
Expense line items show which recognized costs reduce gross profit, operating income, pre-tax income, and net income. Their location depends on the nature of the cost, the function it supports, the reporting framework, and the company’s presentation policy.
This section focuses on selling and administrative costs and income-tax expense. Use the reported statement and notes rather than assuming that every company includes the same accounts in each caption.
| Guide | Use it to answer |
|---|---|
| Selling, General, and Administrative Expenses | Which selling and central support costs make up SG&A, and how should its revenue ratio be interpreted? |
| General and Administrative Expenses | Which management and corporate-support costs belong to G&A, and how do allocation choices affect segments? |
| Tax Expense | How do current and deferred tax effects connect pre-tax income with the reported tax line and effective rate? |
| Cost of Goods Sold | Which costs are assigned to goods or services sold before gross profit? |
| Operating Expenditure | How does the broader idea of current operating spending differ from a specific statement caption? |
If revenue is $100 million, cost of sales is $55 million, SG&A is $20 million, and separately reported R&D is $6 million, operating income is $19 million before any other operating items. Calling total operating expense $20 million would omit R&D; calling SG&A $26 million would use a different boundary from the statement.
Expense analysis is educational and does not provide accounting, audit, tax, legal, valuation, securities, or investment advice.
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G&A expenses are central management and support costs not directly assigned to production or selling. Learn common items, an example, and analysis risks.
SG&A combines selling costs and administrative overhead. Learn common components, the SG&A ratio, a worked income-statement example, and comparison risks.
Income-statement amount combining current and deferred income-tax effects attributable to the reporting period.