General and administrative expenses are considered what?

General and administrative expenses are categorized as company overhead because they represent the ongoing costs associated with running a business that are not directly tied to the production of goods or services. This classification includes expenses such as salaries of management and administrative staff, office supplies, utilities, and rent for office space. These costs support the overall operations of the company but do not vary with production volume, thus distinguishing them from variable expenses.

While variable expenses fluctuate with production levels, general and administrative expenses typically remain stable regardless of how much product a company produces or sells. Product costs are directly associated with the manufacturing of goods, including raw materials and labor directly involved in production, and are separate from general operational costs. Revenue expenses refer specifically to costs associated with generating sales, which may include marketing and promotion, not the broad operational overhead that encompasses general and administrative expenses. Therefore, classifying these expenses as company overhead accurately reflects their role in the overall financial structure of a business.