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Selling, General and Administrative expenses (SG&A or SGA): Consists of the combined payroll costs. SGA is usually understood as a major portion of non-production costs, in contrast to production costs like direct labor.
Expenses are temporary accounts that illustrate a companyâs cost of conducting business. Expenses include items such as supplies, advertising and other costs your company must pay to generate revenue. Debit the income summary account for the total expenses for the period.