What is a key function of General and Administrative expenses?

General and Administrative (G&A) expenses play a crucial role in supporting the overall operations of a business. These expenses encompass a wide range of costs that are necessary for the day-to-day functioning of the organization but do not directly contribute to the production of goods or services. Examples include salaries of administrative staff, office supplies, utilities, and rent for office space.

By providing the necessary infrastructure and support, G&A expenses enable the business to maintain its operations effectively. Without these expenses, the organization could struggle to manage its resources, communicate effectively, or meet its operational needs, ultimately affecting overall performance.

Other options, while relevant in specific contexts, do not capture the primary function of General and Administrative expenses. Funding research and development, for instance, is a more targeted function that relates to specific projects rather than supporting broader business operations. Investing in new product lines is also a strategic initiative that goes beyond the general support of day-to-day operations. Increasing executive bonuses could correlate to performance incentives but does not relate to the foundational support that G&A expenses provide.