Budgeting Basics and Beyond

Chapter 12. General and Administrative Costs: Budgets for Maximum Productivity

The nonfinancial manager may identify general and administrative expenses by a particular function, activity, product line, service, segment, unit or other responsibility center. Managers may be assigned responsibility for administrative costs.

Administrative departments include general administration, personnel, legal, insurance, and computer services. Examples of administrative expenses are executive and office salaries, office rent, office expenses, legal expenses, and dues.

This chapter discusses the budget process, analysis and evaluation of costs, cost control, and employee considerations.