The expenditures of paying wages and salaries as well as perks to non-sales staff are referred to as administration expenses. Operating expenses are one of three categories of costs that make up a business.
Selling and miscellaneous expenses round out the list. On a company's income statement, administrative costs are shown as indirect expenses because they don't directly support the production of goods or the provision of services. Administration costs are referred to as fixed costs since they often remain constant even when output volumes alter (as opposed to variable costs or semi-variable).The extract that follows demonstrates the placement of administrative costs on an organization's
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