Question

walmarts annual report shows the year 2017 their GENERAL ADMIN EXPENSE was 21.16%.

in 2018 it was 21.48%.

in 2019 it is 21.0%

Between 2017 and 2018 it increased slightly then by the end of 2019 it dropped.

why wod the general admin expense decrease?

Answer 1

most administrative costs are fixed in that they rarely vary from month-to-month, even though revenues go up or down, but some factors are may reduce general expenses ,they are as follows

1.Limit Travel and Entertainment Expenses , however it is important for customer relationship but it can be minimise.

2. Don't acquire rented property much like offices for administrative purpose because long term lease may increase you expenses

3 Sublease Office and Yard: if you have excess space then you can give on rent ,extra income to offset the expense

4 Refinance debt:Debt refinancing refers to initiating a new contract, often at better terms than a previous one, to pay off a loan example if you loan taken at rate of 8 percent and currently rate is 6 percent then pay previous one and take new loan

5 Reduce travel cost: Where possible, eliminate travel, replacing the trips with phone calls, emails, and video meetings

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