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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.
DEFINITION of 'Selling, General & Administrative Expense-SG&A'. Reported on the income statement, it is the sum of all direct and indirect selling expenses and all general and administrative expenses of a company.Direct selling expenses are expenses that can be directly linked to the sale of a specific unit such as credit, warranty and advertising expenses.eported on the income statement, it is the sum of all direct and indirect selling expenses and all general and administrative expenses of a company.