When it comes to procurement, what does Sg&A mean? In short, it stands for Selling, General, and Administrative costs. Just think of Sg&A as the category that encompasses all the expenses necessary for a business to function—from salaries to office space rent and utilities. It’s important to note that these costs are different from direct production or manufacturing costs (which go into producing the materials and products you’re selling) or research and development costs (which are applied to creating new ideas). So, Sg&A includes overhead costs that are essential to running any successful business.