SG&A
Selling, general and administrative expenses: operating costs associated with selling and administering the business, such as sales-team pay, advertising, and office costs. Production costs may instead be included in cost of goods sold, and classifications vary.
SG&A at Hanil Widget Works
In the fictional Hanil model for fiscal-year 2022, US$ millions: gross profit of 30.55 minus SG&A of 24.37 and other operating expenses of 0.39 equals operating income of 5.79. The CIM’s summary table rounds gross profit to 30.5 and shows 5.81 after 0.02 of other income. Depreciation and amortization are already included in the model’s operating costs, so do not subtract them again in this bridge.
| Gross profit | 30.55m |
|---|---|
| SG&A | 24.37m |
| Other operating expenses | 0.39m |
| Operating income | 5.79m |
Terms Related to SG&A
Gross profit · Operating income · Income statement · COGS · Zero-based budgeting · All of the glossary