Administrative Budget

You know that SG&A line on the income statement? Well, it stands for Sales, General, and Administrative, and this budget simply prognosticates what a company will spend in the next ninety-one-ish to three hundred sixty-five-ish days.

It answers such fetching questions as, "what will rent cost?" and "how much will our insurance be?" and "what will we spend on lawyers?" The admin budget does not include the people who actually make stuff for the company. It just covers the bureaucrats who do nothing productive, other than organize the work of the people who actually add direct value to the company itself.

At Shmoop, the administrative budget applies to bureaucrats managing contractors, and doesn't cover the cost of the writers, editors, and artists who actually make the fine Shmoop product you dearly love.