Administrative costs: Is the sum of costs associated

Administrative costs: Is the sum of costs associated

Subject: Business    / Finance
Question
Administrative costs: Is the sum of costs associated with the overall management of the enterprise which cannot be readily identified with one of the major functional areas e.g. salary of the factory manager would be seen as a production cost but the salary of the personnel officer will be viewed as administrative cost since the personnel function does work for all other functions of the enterprise.