Revenue Expenditure

An expenditure, the benefits of which is immediately say within one year expended or exhausted in the process of earning revenue., eg., on purchase of goods for sale, on their movement from one place to another, on maintaining assets, on keeping a business organization going, etc. is a revenue
expenditure. Examples of revenue expenditure are:

  1.  Cost of raw material and stores consumed in the process of manufacture.
  2.  Salaries and wages of employees engaged directly or in-directly in production.
  3.  Repairs and renewals of fixed assets.
  4.  Advertisements
  5.  Postage
  6. Printing and Stationery
  7.  Rent, rates and taxes
  8.  Insurance
  9.  Interest on borrowings, etc.
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