What is defined as Selling, General and Administrative (Expenses)?
The Selling, General and Administrative (expenses) is the sum of: a) General and administrative expenses (such as: salaries of non-sales personnel, rent, heat, and light); b) Direct selling expenses (that is, expenses that can be directly tied to the sale of a specific unit, such as: credit, warranty, and advertising expenses); and c) Indirect selling expenses (that is, expenses which cannot be directly tied to the sale of a specific unit but which are proportionally allocated to all units sold during a certain period, such as: telephone, interest, and postal charges). What is an agent? An agent is a representative who normally has authority, perhaps even power of attorney, to make commitments on behalf of the firm he or she represents. Firms in the U.S. and other developed countries have stopped using this term and instead rely on the term representative, since agent can imply more than intended. Any contract should state whether the representative or agent does or does not have legal
