Administrative expenses are those expenditures associated with the general oversight and operation of a business. Examples of administrative expenses are:
Accounting and finance compensation and benefits
Corporate compensation and benefits
Corporate rent and other facility costs
Human resources compensation and benefits
General liability insurance
Information technology compensation and benefits
Administrative expenses are classified as period expenses, so they are charged to expense as soon as they are incurred. If a business is operating under the cash basis of accounting, then these items are charged to expense when paid.