What are administrative expensesĪdministrative expenses include various types of expenses related to administrative activities. Companies must pay office or equipment rental, even when production volumes drop dramatically. General expenses are categorized as fixed costs because the company must pay them, regardless of production or sales volume. Examples are rental expenses, utilities, and computer equipment in offices. General expenses comprise daily operating expenses and unrelated to sales or operating activities. For this reason, selling expenses usually fall into the category of semi-variable costs. For example, logistics and shipping costs increase as companies sell more products.
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