administrative expenses


Necessary costs associated with the general operation of an organization that cannot be attributed to any one department or business unit. Costs such as management and clerical compensation, facility cost are allocated across departmental lines and reported under the general category of administrative expenses of the organization.

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ABC Company was forced to hire a team of efficiency experts to help them find ways to reduce their administrative expenses.

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As they were looking to cut costs, one area where they thought they may be able to cut was administrative expenses. They thought they spent too much on supplies and other non essential items and could save there.

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By far the most costly item among the administrative expenses was the services of a particular "clerk," who for exorbitant fees would gather information on anyone we needed to check out, anywhere.

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