**Selling, General & Administrative Expenses (SG&A) **
selling, general and administrative expenses or sg&a consist of the costs associated with selling a firm's products and the costs incurred in running the firm's daily business operations. the company reports its sg&a on the income statement. paul's pastaria is a family friendly italian restaurant. its selling costs are those that can be linked directly to the sale of a ? pasta. these expenses could include the cost of producing and running an ad about the restaurant through ? and local television stations and of printing and mailing out paul's pastaria discount coupons to nearby households. paul's general expenses and administrative expenses can't be directly linked to the sale of a ? pasta alone since paul also sells pizzas and salads, but these costs must be incurred to make those pasta sales. general and administrative costs include his cooks and servers wages, building insurance to help ? rebuild his restaurant in case of a disaster and the restaurant's phone, internet and utility charges. sg&a does not include the cost of pasta, ? beef, tomatoes, salt, pepper or olive oil. these expenses fall under the cost of goods sold category. why should paul care about his sg&a. if the amount is high as a percentage of sales or as a percentage of net income compared to the amount similar restaurants are spending, he might be spending too much money on sg&a and hurting his bottom line. while paul won't be able to examine the sg&a expenses of other small private independent italian restaurants like his, he can look at those of publicly traded restaurant companies to see if he is spending in the ?. ideally, paul wants his ag&a to be as lowest possible while maintaining a high level of pasta sales.
- selling, general and administrative expense（sga）・・・販売費及び一般管理費