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Chapter 11. Analysis Tool #8: Profitabil... > Analyzing Overhead Expenses

Analyzing Overhead Expenses

Sales, general and administrative (SG&A) is a catch-all category that includes most of a firm's operating expenses except for cost of sales, research and development, and depreciation and amortization. SG&A expenses are, in effect, overhead.

Sometimes companies list marketing expenses on a separate line from other SG&A expenses on the income statement. Consider all operating expenses except cost of sales, research and development, and deprecation/amortization charges as SG&A for this analysis.


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