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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 expenses are also monitored to ensure proper cash flow is being managed. BREAKING DOWN 'Selling, General & Administrative Expense - SG&A' SG&A are the costs that occur during the daily operations of a company and not directly related to the manufacturing of the product. These are the expenses related to the selling, promoting and delivering of a product as well as managing the company.