The Controller's Function: The Work of the Managerial Accountant, 4th Edition

Chapter 10

General and Administrative Expenses

The category of expenses known as general and administrative (G&A) expense relates primarily to the costs of the various top management functions at the headquarters level having to do with overall policy determination and direction of the business. This chapter discusses the accounts included in the G&A category, allocation of cost, and G&A cost control.

Functions Involved

The typical medium- to large-size company would include the cost of these departments in the G&A expense category:

• Office of the chairman of the board
• Office of the president
• Financial organization:
  • Office of the chief financial officer
  • Investor relations department
  • Office of the controller

    Accounting department

    Tax department

    Financial planning and control department

    Financial information systems

  • Office of the treasurer
  • Cash administration

    Risk management

    Retirement plan investments

  • Office of the chief internal auditor

    Financial auditing

    Systems auditing

    Special reviews

• Legal department:
  • Office of the vice president—legal

    Office of the corporate secretary

    Litigation

    SEC relations

    Patents and trademarks

• Corporate offices for the direction and control of these major functions:
  • Marketing
  • Manufacturing
  • Research and development
  • Human resources
  • Management information systems
  • Public relations
  • Strategic planning

To the extent that the purpose of these departments or organizational units have to do with overall policy determination, planning, direction, and ...