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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.
Here is another place where language can be confusing. For many companies, operating expenses and SG&A are the same thing. SG&A stands for Selling, General, and Administrative expenses and includes the day to day expenses not directly related to manufacturing the product or selling the service.ere is another place where language can be confusing. For many companies, operating expenses and SG&A are the same thing. SG&A stands for Selling, General, and Administrative expenses and includes the day to day expenses not directly related to manufacturing the product or selling the service.