Explanation of Sales, General, and Administrative:
Also called SG and A, Marketing, General, and Administrative,
or simply General and Administrative, and listed on the Income
Statement, Sales, General, and Administrative are the expenses related to the
sale of the goods or services and also the expenses for management of the
company operations. Expenses such as leases and rent, salaries and wages,
facility expenses. Occasionally, advertising and marketing expenses
toward the products or services are included, but are often listed as a
separate line item.
Importance of Sales, General, and Administrative:
Sales, General, and Administrative should closely follow Net Sales, and any
percent increase or decrease over multiple periods when compared to Net Sales
needs to be further investigated.
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