Revenue Expenditure

Revenue Expenditure refers to short term expenses used in the same accounting period or the expenses incurred to oprate the business on day-to-day basis .text

Aman owns an IT company. To operate the business he has a lot of expenditures to handle.

These expenditures include: – Salaries – Utility Bills – Rentals – Pensions – Office Supplies – Wages etc. These all are considered as Revenue Expenditure.

Types: – Direct Expenses – Indirect Expenses

DIRECT EXPENSES: costs incurred when goods and services are in the process of being produced orduring the day-to-day operation.

INDIRECT EXPENSES: costs incurred when the finished goods and services are being sold and distributed.0