Administrative Expense
/ˌædmɪnɪˈstreɪtɪv ɪkˈspɛns/
Definitions
- (n.) Costs incurred in the management and general operation of a business or estate, not directly tied to a specific function like production or sales.
The company recorded high administrative expenses due to increased overhead costs.
- (n.) In bankruptcy law, expenses that arise in the process of administering a bankrupt estate and have priority for payment over many other claims.
Administrative expenses must be paid before unsecured claims in a bankruptcy proceeding.
Forms
- administrative expense
- administrative expenses
Related terms
See also
Commentary
Usually distinguished from direct costs; important in bankruptcy for prioritizing claims.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.