General Host described how it was engaged in a vigorous campaign to cut costs in order to become more competitive and more profitable—like everybody else in America. Although most companies make such claims, the proof is in the S, G, and A category (selling, general, and administrative expenses) on the income statement (see Table 9-2). You’ll note here that General Host’s S, G, and A expenses were declining, a trend that continued into 1991.
