Expenditure incurred on consumables and goods for resale is?

  • A revenue expenditure
  • B capital expenditure
  • C sunk cost
  • D miscellanous expenses
jamb 2009accounting

The correct answer is A. revenue expenditure

Revenue expenses are incurred when a company purchases products or services necessary for generating revenue in the short term. They include overhead cost, maintenance cost of plants and equiptment.

Previous question Next question