General and administrative (G&A) expenses are expenses not related to a specific business unit or function that may be incurred as a benefit to the company as a whole.
General and administrative expenses appear on the income statement below cost of goods sold (COGS).
A portion of general and administrative expenses is fixed as they are incurred regardless of the level of production or sales in a given period.
Regarding the variable part of general and administrative expenses, management will try to keep general and administrative expenses as low as possible, as they do not have a direct impact on the goods or services provided to customers.