SG&A Meaning: Selling, General & Administrative Expenses Definition
A firm with high fixed costs is said to have high operating leverage. SG&A is critical when looking at a company’s profitability, conducting break-even analyses, and cost-cutting scenarios. Whether you provide line-by-line detail on your income statement or do a single line item entry, you’ll need to properly categorize SG&A expenses. The SG&A ratio is…