Administrative Expenses

What are 'Administrative Expenses'

Administrative expenses are the expenses that an organization incurs not directly tied to a specific function such as manufacturing/production or sales. These expenses are related to the organization as a whole as opposed to an individual department; also referred to as "administrative cost."

BREAKING DOWN 'Administrative Expenses'

Salaries of senior executives and costs of general services such as accounting are examples of administrative expenses.

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RELATED FAQS
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    An operating expense covers the production and marketing of products and services, whereas an administrative expense covers ... Read Answer >>
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  3. What is the difference between recurring and non-recurring general and administrative ...

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