Administrative expenses are costs incurred by an organization that are not directly related to a specific core function, such as manufacturing or sales. These overhead expenses are related to the organization as a whole, rather than individual departments or business units. They may include salaries of senior management, general services or supplies, depreciation expenses, and other related costs. Some examples of administrative expenses include wages and benefits, building leases, utilities, office supplies, and depreciation expenses. These costs are often among the first identified for budget cuts, as they do not directly impact a company's main business functions.
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