Define Revenue expenditure. Revenue expenditure synonyms, Revenue expenditure pronunciation, Revenue expenditure translation, English dictionary definition of Revenue expenditure. n. An expense incurred in normal business operations, such as an administr
Definition: Revenue Expenditure, also known asOperating ExpensesorOpExrefers to the expenditure incurred in the course of the day-to-day business activities i.e. in the production of goods and services and its sale, which facilitates revenue generation of the company. Such expenses do not increase...
The meaning of REVENUE EXPENDITURE is an expenditure allocable to and chargeable against revenue —contrasted with capital expenditure.
Revenue Expenditure: Definition and Explanation: All the expenditures which are incurred in the day to day conduct and administration of a business and the effect-of which is completely exhausted within the current accounting year are known as"revenue expenditures". These expenditures are recurring by...
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The Difference Between Capital Expenditures and Revenue Expenditures A capital expenditure is made when a fixed asset is acquired. A fixed asset is expected to provide value for a business for an extended period of time, perhaps more than a decade. During that time, the fixed asset may contribu...
Capital expenditure is incurred, which helps in the creation of the asset. Since the investment helps create assets, these can be created into cash as and when required by the business. These revenue expenditures are incurred mostly on sales promotion and advertising activities and, therefore, can...
An expenditure which results in the acquisition of permanent asset which is intended lo be permanently used in the business for the purpose of earning revenue, is known as capital expenditure. These expenditures are 'non-recurring' by nature. Assets acquired by incurring these expenditures are utili...
Expenditure ➝ An expenditure is the total amount spent to acquire goods or services. Expense ➝ An expense is incurred to operate a business and generate revenue. While an expenditure is recorded at the time of purchase, an expense is recognized over the consumption period. For instance, th...
the company can avoid revenue deficits in the future. It can explore more cost-efficient ways of doing business, such as finding suppliers who can supply materials at a lower cost or byvertically integratingprocesses along its supply chain. The company can also invest in training its workforce ...