How can you cut in administrative expenses?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Question 11:

How can you cut in administrative expenses?

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An administrative expenses are referred to as an expenses, where the company used to incur the expenses that does not directly related to the specified core function like - sales, manufacturing, or production. Overhead expenses that are related to the company as a whole, which are opposed to the business units or individual departments.  

Administrative expenses often identified as the budget cuts in the first place as it does not have a direct impact on the major business function of the corporation. Management usually allocate an administrative expenses on the basis of the expense, revenue, or some other measures.

 

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