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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.
You have selling expenses that you incur even when you donât sell anything. These include advertising and marketing costs, as well as salaries for sales personnel. Think of indirect selling expenses as money you spend to try to get sales, even if you donât succeed in getting them.