SG&A expenses comprise all the day-to-day operating costs of running a business that aren’t related to producing a good or service. This includes a wide range of expenses, such as rent, advertising and marketing, and salaries of management and administrative staff. SG&A does not include the direct costs of producing goods or acquiring goods for sale, which are calculated separately as cost of goods sold (COGS). It also excludes research and development (R&D) costs. The amount that a company spends on SG&A may play a key role in determining its profitability.