Definition SG&A. Description.
SG&A is short for Selling, General and Administrative
Expenses, often also referred to as overhead. It is an item on the
Profit and Loss Statement
which combines all salaries, commissions, and travel expenses for executives,
sales managers, and other employees, advertising costs, office payroll and
expenses.
Analyzing this figure as a percentage of sales or net income
and compare it to similar companies (Benchmarking)
gives a good indication if the management keeps expenses under control. Low
overhead costs are a factor determining profitability. Rapidly growing companies
can sometimes somewhat lose control of costs. In Mergers and Acquisitions,
cost reduction is frequently both a major promise and a disappointment.
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Forum - SGA Expenses
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SG&A Cases and Examples
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Best Practices - SGA Expenses
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Resources - SGA Expenses
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Compare with: Downsizing
| Outsourcing |
Restructuring |
Operating Profit Percentage
| Gross Profit Percentage
| Business Process Reengineering
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Acquisition
Integration Approaches |
Benchmarking
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Special Interest Group Leader
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