Administrative expenses are those costs which are associated with day to day running of business of the company. These cost can neither be allocated towards manufacturing nor towards selling hence one can say it can be considered to be in middle of expense chain of a company, given below are some of the examples of administrative expenses –
- Salaries paid to accountants, clerk and officers of the company
- Rent of office building
- Printing and stationary
- Telephone, computer and internet related charge
- Electricity charges
- Canteen expense
- PF and gratuity of employees
Apart from above many more can be included in the above depending on the type of company and industry in which firm operates.