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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.
SG&A. Selling, General and Administrative Expenses. Income statement item which combines salaries, commissions, and travel expenses for executives and salespeople, advertising costs, and payroll expenses. â Advertising agencies have significant SG&A because this expense encompasses commissions and travel expenses. â.