Sales, General and Administrative (SG&A) Expenses

SG&A expenses (Selling, General, and Administrative Expenses) are the operating costs a company incurs outside of direct production. These include expenses related to sales and marketing, corporate management, finance, HR, legal, IT, facilities, and other support functions. SG&A is a key component of operating expenses and appears on the income statement, impacting a company’s profitability. Efficient management of SG&A helps improve cost structures, support scalability, and free up resources for growth initiatives. Organizations often benchmark SG&A performance, analyze cost-to-revenue ratios, and apply automation or shared services models to optimize these expenses and enhance enterprisewide operational effectiveness.