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General expenses

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General expenses are the costs a business incurs as part of its daily operations, separate from selling and administration expenses. Together, general, selling and administration (SG&A) expenses make up a company’s operating expenses.

Examples of general expenses include rent, utilities, postage, supplies and computer equipment.

General expenses are categorized as indirect expenses on a company’s income statement because they do not contribute directly to the making of a product or delivery of a service. They are fixed costs because they tend to remain stable even when production volumes change.

More about general expenses

The excerpt below shows where general expenses appear on a company’s income statement and how they are used to calculate total costs and earnings before interest and taxes.

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