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Administrative costs are business costs that aren't directly related to the production or marketing of goods and services. This includes the entire cost of departments such as human resources or finance. Administrative costs also include any expenses such as office space, supplies and travel that aren't directly related to marketing, sales or production. The following are common examples of administrative costs.
Bank Fees | Benefits | Bonuses | Building Leases / Rent | Consulting Fees | Depreciation & Amortization | Entertainment & Meals | Executive Compensation | Finance / Accounting | General Management | Human Resources | Information Technology | Insurance | Interest Payments | Legal Expenses | Licenses | Maintenance | Management Fees | Office Supplies | Outsourcing Costs | Property Taxes | Public Relations | Regulatory Fees | Salaries & Wages | Shipping | Software Fees | Technology Costs | Training | Travel | Utilities | Vehicle Expenses |
The costs above are only administrative where they don't relate to the production and marketing of products and services. For example, salaries and wages related to manufacturing wouldn't be administrative.In some cases, marketing costs are included with administrative costs. In this case they are typically known as Selling, General & Administrative Expense.
Marketing can be considered overhead but is not administrative as it relates to revenue generation.|
Type | | Definition | Business costs that aren't directly related to the production or marketing of goods and services. | Also Known As | Administrative Overhead | Related Concepts | |
Administration
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