General and Administrative Expense

General and administrative expense means the cost of running the basic operations and management of a business. In simple terms, it is the overhead cost of keeping the company operating. General and administrative expense is important because it affects profitability and operating efficiency. Investors may watch whether these costs grow too quickly compared with revenue. For example, executive salaries, office costs, legal fees, accounting, human resources, and corporate administration can be general and administrative expenses. General and administrative expense is not usually tied directly to producing one product. It supports the overall company.