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This question is about employer.
What is an administrative budget?
An administrative budget is a financial planning tool that organizations use to detail all projected administrative expenses, as well as projected sales and general costs. Administrative budgets include non-production expenses. Some common non-production expenses include:
Marketing
Advertising
Rent for office space
Legal services
Business insurances
Other forms of insurance
Payroll for non-manufacturing departments within a company
Administrative budgets are most commonly found for the time frame of a year, but they can also be structured for the time frames of a month, or quarter. No matter the accounting period, administrative budgets stick to the administrative side of a particular business. This means it concerns costs that are not directly associated with the production of products or services.
The size of an administrative budget is directly related to the size of the company creating it. Large companies can have very high overhead costs resulting in large administrative budgets, while other companies, sometimes small and large, have more costs that are directly associated with production, resulting in smaller administrative budgets.
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