Concept of Administrative Expenses Administrative expenses refer to the expenses incurred by the administrative department of an enterprise for the organization and management of production and business activities.
Administrative expenses are period expenses and are charged to profit or loss in the period in which they are incurred. [Edit Paragraph] Items of Administrative Expenses Specific items include:
Labor Union Expenses, Employee Education Expenses, Business Entertainment Expenses, Taxes, Technology Transfer Fees, Amortization of Intangible Assets, Consulting Fees, Litigation Fees, Amortization of Start-up Costs, Bad Debt Losses, Company Expenses, Management Fees Paid to Supervisors, Employment Insurance Premiums, Unemployment Insurance Premiums, Board of Directors' Dues, and Other Administrative Expenses.
Corporate expenses include salaries of headquarter management, employee benefits, travel expenses, office expenses, board of directors' dues, depreciation, repairs, material consumption, amortization of low-value consumables and other corporate expenses;
Labor insurance premiums refer to the pensions of retired employees, price subsidies, medical expenses (including retirees' participation in the medical insurance fund), relocation expenses, employee retirement benefits, employee death funeral expenses, and other administrative expenses. Retirement benefits, funeral subsidies for the death of employees, pension, all funds paid to retired cadres in accordance with the regulations and the implementation of the social coordination fund; Standby insurance premiums refer to the standby insurance fund paid by the enterprise in accordance with state regulations;
Board of directors' dues refer to the expenses incurred by the supreme authority of the enterprise and its members in order to carry out their functions, including travel expenses, meeting expenses, etc.;
Business Hospitality refers to the costs of socializing and entertaining incurred by the enterprise for the reasonable needs of business operations.
Overview of selling expenses incurred by enterprises in the process of selling products, self-made semi-finished products and the provision of labor services, etc., including packaging costs borne by the enterprise, transportation costs, advertising costs, loading and unloading costs, insurance costs, commissioned by the commissioned sales commission, exhibition fees, leasing fees (excluding finance lease fees) and sales service fees, sales department staff wages, employee benefits, travel expenses, office expenses, depreciation costs, repair costs, material consumption, amortization of low value consumables and other provisions.