Definition:
An expense is the act of using money, time, or resources to accomplish a goal, particularly in the context of business. It refers to the costs that a business acquires within a certain timeframe, which can be offset against revenue. Certain expenses, such as those related to business operations and promotion, are eligible for tax deductions, while others, like capital expenses, are not. Examples of expenses include wages, rent, utilities, legal and accounting fees, medical expenses, and travel expenses.
General Administrative Expense (G & A) refers to the expenses incurred in running a business, including executive and clerical salaries, rent, utilities, and legal and accounting services. These expenses are separate from those incurred in manufacturing or selling. G & A is also known as administrative expense or general expense. Examples of G & A expenses include salaries and benefits of executives and administrative staff, office rent, utility costs, and legal and accounting services.
G & A stands for General and Administrative expenses. It refers to the costs incurred by a business that are not directly related to production or sales, but rather to the overall management and operation of the company.
Yes, G & A expenses are generally tax-deductible for businesses. However, it is important to consult with a tax professional or accountant to ensure compliance with specific tax laws and regulations.
No, G & A expenses cannot be included in the COGS. COGS only includes the direct costs associated with producing or acquiring goods for sale, such as raw materials and direct labor.
Examples of G & A expenses include salaries and wages of non-production employees, rent for office space, utilities, insurance, legal fees, accounting fees, marketing expenses, and office supplies.
Yes, businesses can take measures to reduce or eliminate G & A expenses. This can be achieved through cost-cutting measures, streamlining operations, outsourcing certain functions, or implementing more efficient processes.
There are no specific regulations or laws governing G & A expenses. However, businesses must ensure that their G & A expenses are reasonable and necessary for the operation of the company, and comply with general accounting principles.
Yes, businesses often allocate G & A expenses to different departments or cost centers based on their usage or benefit. This helps in determining the true cost of each department’s operations and facilitates decision-making.
Generally, G & A expenses are considered as operating expenses and are not capitalized as assets. However, there may be certain circumstances where specific G & A expenses can be capitalized, such as costs directly related to the acquisition or construction of an asset.
Businesses can track and manage G & A expenses effectively by implementing robust accounting systems, utilizing expense tracking software, regularly reviewing and analyzing expenses, and setting budgetary controls.
In some cases, businesses may be able to pass on certain G & A expenses to clients or customers through billing or pricing structures. However, this depends on the nature of the business and the specific agreements in place with clients.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/g-a/
- Modern Language Association (MLA):G & A. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/g-a/.
- Chicago Manual of Style (CMS):G & A. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/g-a/ (accessed: May 09 2024).
- American Psychological Association (APA):G & A. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/g-a/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts