Administrative Expenses

AAA

DEFINITION of 'Administrative Expenses'

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."

INVESTOPEDIA EXPLAINS 'Administrative Expenses'

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

RELATED TERMS
  1. Administrative Accounting

    The financial reporting of factors that influence decision making, ...
  2. Operating Earnings

    Profit earned after subtracting from revenues those expenses ...
  3. Earnings

    The amount of profit that a company produces during a specific ...
  4. Account

    1. An arrangement by which an organization accepts a customer's ...
  5. Expense

    1. The economic costs that a business incurs through its operations ...
  6. Income Statement

    A financial statement that measures a company's financial performance ...
Related Articles
  1. Breaking Down The Balance Sheet
    Personal Finance

    Breaking Down The Balance Sheet

  2. The One-Time Expense Warning
    Fundamental Analysis

    The One-Time Expense Warning

  3. The Flow Of Company Information
    Investing Basics

    The Flow Of Company Information

  4. Find Investment Quality In The Income ...
    Options & Futures

    Find Investment Quality In The Income ...

comments powered by Disqus
Hot Definitions
  1. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  2. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  3. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
Trading Center