It includes expenses such as rent, advertising, marketing, accounting, litigation, travel, meals, management salaries, bonuses, and more. … On occasion, it may also include depreciation expense, depending on what it’s related to. In an income statement.

What is included in SG?

Selling, General & Administrative expenses (SG&A) include all everyday operating expenses of running a business that are not included in the production of goods or delivery of services. Typical SG&A items include rent, salaries, advertising and marketing expenses and distribution costs.

How do you consider SG&A in product costing?

SG&A will be reported on the income statement in the period in which the expenses occur. Hence, SG&A expenses are said to be period costs as opposed to being part of a product’s cost. Since SG&A expenses are not a product cost, they are not assigned to the cost of goods sold or to the goods that are in inventory.