Revenue expenditure is an expenditure which is periodically incurred to maintain the revenue the revenue-earning capacity of the business, e.g.,
- Expenditure incurred to maintain the value of any existing asset, e.g., ordinary repairs. Whitewashing of the building, etc.
- Expenditure incurred in the ordinary conduct and administration of the business, i.e., tent, salaries, wages, etc.
- Expenditure incurred in connection with the administration and distribution of the goods manufactured or sold, e.g., commission, travelling expense, advertising and so on.
More from this Section
- Sales budget
A sales budget is a conservative estimate of the expected volume of sales, primarily for making current purchasing, production, and cash ...
- Direct labor quantity standard
The direct labor quantity standard is the time that should be required to make one unit of the product. This standard is especially critical in labor-intensive companies.
- Plant assets
Plant assets are resources that have three characteristics: they have a physical substance are used in the operations of a business, and are not intended for sale to customers.
Premium is the difference between the selling price and the fact value of a bond/stock, when the bond/stock is sold for more than its face value.
- Special journal
Special journal refers to a journal that records similar types of transactions, such as all credit sales.
- Manipulation or falsification of accounts
By manipulation or falsification of accounts we mean to say that the accounts are prepared in such a way as to show more profits or less
- Selling and administrative expense budget
Selling and administrative expense budget is a projection of anticipated selling and administrative expenses for the budget period.