General and Administrative (G&A) expenses are costs associated with running a business that arent related to products or sales. They are incurred in the day-to-day operations of a business and may not be directly tied to a specific business unit or function. G&A expenses are displayed on the income statement below the cost of goods sold (COGS) and are typically lumped with selling expenses, forming a selling, general, and administrative expense line item. A portion of G&A expenses is fixed, as they are incurred regardless of the level of production or sales in a given period. Examples of G&A expenses include building rent, consultant fees, depreciation on office furniture and equipment, insurance, executives wages and benefits, legal counsel and accounting staff salaries, office supplies, and utilities.

G&A expenses are indirect costs that have no direct impact on a businesss profit. While there is a strong motivation for management to reduce these costs, because they are fixed costs, reducing general and administrative costs is a difficult thing to do. To calculate G&A expenses for a certain time period, all you have to do is add them up. G&A is part of SG&A expenses or selling, general, and administrative expenses, which is the total of all direct and indirect selling expenses and all general and administrative costs.