Revenue Expenditure Economics Definition

Which are incurred for meeting day today requirements of a business and the.

Revenue expenditure economics definition. Meaning and definition of revenue expenditure. Revenue expenditure also known as operating expenses or opex refers to the expenditure incurred in the course of the day to day business activities i e. From longman dictionary of contemporary english expenditure ex pen di ture ɪkˈspendɪtʃə ər noun 1 pe countable uncountable spend money the total amount of money that a government organization or person spends during a particular period of time income expenditure on expenditure on research and development huge cuts in public expenditure the amount of money a. A term used to contrast with capital expenditure.

The expense incurred for maintaining the day to day activities of a business. A survey produced quarterly by the census bureau that provides estimates of total operating revenue and percentage of revenue by customer class for communication key. Generally expenditure incurred on normal running of the government departments and maintenance of services is treated as revenue expenditure. Revenue expenditure is incurred in the current period or in one period of account.

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 nature i e. The amount of money spent by a business or organization on general operating costs such. Conversely revenue expenditure implies the routine expenditure that is incurred in the day to day business activities. Expenditure incurred for acquiring assets to enhance the capacity of an existing asset that results in increasing its lifespan.

A revenue expenditure is a cost that will be an expense in the accounting period when the expenditure takes place. Revenue expenditure is that expenditure which is not a capital expenditure. Definition of revenue expenditure. Revenue expenditures are often discussed in the context of fixed assets.

In the production of goods and services and its sale which facilitates revenue generation of the company. According to kohler it is an expenditure charged against operation. The revenue expenditures take place after a fixed asset had been put into service and simply keeps the asset in working order. Examples of revenue expenditure are salaries of government employees interest payment on loans taken by the government pensions subsidies grants rural development education and health services etc.