Administration expenses are costs incurred for managing and running the overall operations of a business.

Simple Meaning:

They are office and management-related expenses that are not directly connected to production or selling.

Examples:

Office staff salaries

Office rent

Electricity and water charges

Stationery and printing

Audit and legal fees

Depreciation of office equipment

Nature:

These expenses are indirect costs and are usually shown in the Profit and Loss Account.

In short, administration expenses are the general operating costs needed to manage a business.