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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.
General and administrative expense is the set of expenses required to administer a business, and which are not related to the construction or sale of goods or services.This information is needed to determine the fixed cost structure of a business.Examples of general and administrative expenses are: 1  Accounting staff wages and benefits.eneral and administrative expense is generally not considered to include research and development (or engineering) expenses, which are usually aggregated into a separate department. General and administrative expenses appear in the income statement below the cost of goods sold.