What are general expenses?

General expenses pertain to operational overhead expenses that impact the entire business. G&A expenses include rent, utilities, insurance, legal fees, and certain salaries. G&A expenses are a subset of the company’s operating expenses, excluding selling costs.

What expenses are fixed?

Examples of Fixed Expenses

Rent or mortgage payments.
Renter’s insurance or homeowner’s insurance.
Cell phone service.
Internet service.
Health, disability or life insurance premiums.
Property taxes.
Childcare expenses.
Student loan or car loan payments.

Is general and administrative expense a fixed cost?

General and administrative expenses typically refer to expenses that are still incurred by a company, regardless of whether the company produces or sells anything. General and administrative expenses are also typically fixed costs in nature, as they would stay the same regardless of the level of sales that occur.

Is general expenses an asset or liability?

Expenses fund your daily business operations and contribute to turning a profit. When you don’t pay off an expense immediately, it then becomes a liability on the balance sheet.

What are management and general expenses?

Management and general expenses are those costs associated with the overall function and management of the nonprofit organization, and include many personnel costs, accounting and legal fees, and outlays for equipment and supplies.

How do you find general expenses?

General and administrative expenses typically appear on a company’s income statement for a given period directly below the cost of goods sold (COGS). The organization then subtracts the COGS from net revenue to find the gross margin.

Which of the following is not an example of a fixed expense?

Which of the following is NOT an example of a fixed expense. Buying food is not a fixed expense because you have the liberty to choose what and where to it, meaning its variable. Typical household fixed expenses are mortgage or rent payments and insurance premiums.

Is general expenses debit or credit?

Recording changes in Income Statement Accounts

Account Type	Normal Balance
Liability	CREDIT
Equity	CREDIT
Revenue	CREDIT
Expense	DEBIT

What are managerial expenses?

Understanding Administrative Expenses Administrative expenses may include salaries of senior management and the costs associated with general services or supplies; for example, legal, accounting, clerical work, and information technology.

What is included in general and administrative expenses?

General and Administrative (G&A) expenses are the day-to-day costs a business must pay to operate, whether or not it manufactures products or generates revenue. Typical G&A expenses include rent, utilities, insurance payments, and wages and salaries for administrative and management staff other than salespeople.

Why are general and administrative expenses considered fixed costs?

General expenses are categorized as fixed costs because the company must pay them, regardless of production or sales volume. Companies must pay office or equipment rental, even when production volumes drop dramatically. Administrative expenses include various types of expenses related to administrative activities.

Which is an example of a fixed cost?

When the expense depends on usage, such as electricity, it will not be fixed, but will vary from month to month. An example of a fixed general expense would be a monthly retainer or fee paid to an accountant or lawyer. If the expense is the same amount every month, it is called a fixed cost.