Administrative cost

Administrative cost,

Definition of Administrative cost:

  1. An expense incurred in controlling and directing an organization, but not directly identifiable with financing, marketing, or production operations.

    The salaries of senior executives and costs of general services (such as accounting, contracting, and industrial relations) fall under this heading. Administrative costs are related to the organization as a whole as opposed to expenses related to individual departments. Also called administrative expenses.

Meaning of Administrative cost & Administrative cost Definition