Administrative expenses are the costs associated with the general operation of a business that are not directly tied to producing goods or services. These expenses include items such as salaries for office staff, utilities, office supplies, and rent for office space. They are essential for maintaining the day-to-day functions of a company. These costs are typically categorized as operating expenses on a company's income statement. While they do not contribute directly to revenue generation, managing administrative expenses effectively is crucial for overall profitability and financial health. Reducing these expenses can help improve a company's bottom line.