SG&A
Business & Finance abbreviation · Accounting
| Stands for | Selling, general and administrative expenses |
|---|---|
| Categories | Business & Finance |
SG&A stands for Selling, general and administrative expenses, an accounting abbreviation.
Income statement line covering operating costs not directly tied to production, such as sales commissions, marketing, office rent, executive salaries, legal fees and corporate overhead. Together with R&D, it typically makes up a company's operating expenses.
Example: SG&A fell to 21 percent of revenue after the company closed two regional offices.
Usage notes
Pronounced "S-G-and-A." Analysts watch the SG&A ratio for operating leverage: if revenue grows faster than SG&A, margins expand. Some companies report selling expenses and G&A separately. Cost-cutting programs often target SG&A first because it is less tied to production volume.
Related abbreviations
More accounting abbreviations
- Q4 – Fourth quarter
- QoQ – Quarter over quarter
- QTD – Quarter to date
- RE – Retained earnings
- ROU – Right-of-use asset
- SFAS – Statement of Financial Accounting Standards
- SOX – Sarbanes-Oxley Act
- T&E – Travel and expenses
- TB – Trial balance
- VIE – Variable interest entity
- WAC – Weighted average cost
- WIP – Work in progress