The
Definition Of

Revenue expenditure

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.
Share it:  Cite

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
    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.