SG&A includes all non-production business costs. It covers overhead costs necessary for daily operations. SG&A differs from COGs, which focus on production costs
Operating expenses are ongoing costs needed to keep a business running. They include rent, utilities, payroll, office supplies, and marketing costs. Operating expenses can be fixed (constant) or variable (fluctuating)
G&A expenses are costs not directly related to sales or production. Includes office supplies, utilities, executive salaries, and accounting fees. Found in Operating Expenses section below cost of goods sold
COGS represents the expenses incurred to produce products or services. Includes direct labor and materials for production. Excludes indirect costs like utilities and marketing expenses
G&A expenses are part of operating costs excluding selling expenses. Operating expenses cover daily business operations
Depreciation spreads tangible asset costs over useful life for accounting and tax purposes. Companies match depreciation expenses to related revenues in same reporting period. Depreciation reduces taxable income and helps companies comply with GAAP