Administrative expenses pertain to expenses related to what?

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Administrative expenses are costs tied to the general management and office functions that support the whole business, not directly tied to producing goods or selling them. They cover items like executive and clerical salaries, office rent, utilities for the main offices, and office supplies. Because these expenses support operations in a broad, ongoing way rather than a specific production or sales activity, they’re treated as period costs and expensed in the period incurred. Production costs are the costs of manufacturing goods and are added to inventory, while selling expenses relate to marketing and distributing products. Financing activities involve items like interest and debt-related costs. So the expenses associated with office and administrative work best fit administrative expenses.