Administrative expenses

Description: Administrative expenses are the costs associated with the general operation of a business. These expenses are essential for the daily functioning of the company and can include a variety of costs, such as salaries of administrative staff, office rent, office supplies, utilities, and other indirect expenses. They are often considered fixed costs, as they do not vary directly with the volume of production or sales. Efficient management of these expenses is crucial for the financial health of a company, as excessive administrative costs can impact profitability. Additionally, administrative expenses are an important component in budgeting and cost accounting, allowing companies to assess their performance and make informed decisions about resource allocation. In a broader context, these expenses may also include costs related to the management of systems and processes that support business operations. Therefore, understanding and controlling administrative expenses is fundamental for any business looking to optimize its operations and maximize profitability.

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