Administrative expenses

Administrative expenses,

Definition of Administrative expenses:

  1. Administrative expenses are expenses an organization incurs that are 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 individual departments or business units. Administrative expenses include salaries of senior executives and costs associated with general services, for example, accounting and information technology. They tend to be unrelated to gross margins.

  2. Alternative term for administrative cost.

  3. Companies incur administrative expenses to perform basic operations, increase efficiency or comply with laws and regulations. On the income statement, administrative expenses appear below cost of goods sold and may be shown as an aggregate with other expenses such as general or selling expenses.

How to use Administrative expenses in a sentence?

  1. Our net income has recently been affected by an increase in administrative expenses in our attempt to provide better customer service to our client base.
  2. The administrative expenses for the non-profit were considerably higher than expected so, yesterday, an investigation was launched into their operations.
  3. Some level of administrative expenses will always be incurred as a necessary part of operations.
  4. The largest companies spend might spend millions of dollars on administrative expenses because there are so many small costs that arise in their daily operations.
  5. Administrative expenses are often the first identified for budget cuts, because they do not directly impact a company's main business functions.
  6. Management may allocate administrative expenses to its business units based on a percentage of revenue, expenses or other measures.
  7. Administrative expenses are costs incurred by a business that are not directly related to a specific business function.

Meaning of Administrative expenses & Administrative expenses Definition

Administrative Expenses,

Administrative Expenses Meanings:

  • A simple definition of Administrative Expenses is: Administrative costs are costs that are not related to the production or sale of a company. Instead, it is the cost of the work that the company needs to do to keep it up and running. In the case of insurance, insurers usually have a lot of administrative costs, such as rent, utilities, some salaries and anything that is not directly related to underwriting or marketing.

  • Meaning of Administrative Expenses: Administrative expenses are expenses incurred by the organization which are not directly related to any particular work, for example. B. Preparation, production or sale. These costs refer to the organization as a whole, not to individual departments or business units. Administrative expenses include executive salary and general service fees. B. Accounting and Information Technology. They are not usually tied to gross margins.

    • Management costs are the costs of a company and are not directly related to certain business functions.
    • Running a business always involves a certain amount of administrative work.
    • Management costs often point to budget cuts, as they do not directly affect the company's core business.
    • Management may allocate administrative expenses to its business units based on a percentage of revenue, expenses or other measures.

  • You can define Administrative Expenses as, Costs that are not only related to certain tasks, such as production costs and direct sales. This usually includes headquarters and accounting costs.

Literal Meanings of Administrative Expenses


Synonyms of Administrative

organizational, management, managerial, executive, directorial, governmental, supervisory, directing, regulatory, controlling


Meanings of Expenses:
  1. Incl costs or necessities of something.

  2. Compensation over taxable profit (expenses incurred)

Sentences of Expenses
  1. Conference rooms are expensive

Synonyms of Expenses

cost, price