Revenue Expenditure: Explanation and Examples

Explanation:

Revenue expenditure refers to the expenses incurred by a company or organization in the course of its operations or business activities to generate income. These expenses are generally short-term in nature and are incurred on a regular basis. Revenue expenditure does not result in the acquisition of a long-term asset or investment, and the benefits of such expenditure are consumed within the financial year. The main objective of revenue expenditure is to maintain the normal business operations and generate revenue.

Examples:

The following are some examples of revenue expenditures:

- Salaries and wages paid to employees
- Rent paid for office premises
- Electricity, water, and other utility bills
- Advertising and marketing expenses
- Repair and maintenance expenses
- Insurance premiums
- Raw material and inventory costs
- Packing charges of goods sold

Explanation of Option 'C':

Packing charges of goods sold is an example of revenue expenditure because it is an expense incurred to generate revenue. When a company sells its products, it incurs packing charges to ensure that the products are safely and securely delivered to the customer. These charges are a necessary part of the sales process, and the benefits of these expenses are consumed within the same financial year. Therefore, packing charges of goods sold are considered a revenue expenditure.

Conclusion:

Revenue expenditure is an essential part of the business operations of a company or organization. It is incurred to maintain the normal business activities and generate revenue. Understanding the difference between revenue and capital expenditure is crucial for financial management and accounting purposes.

Correct answer option C
because all expenses which incurred for earned revenue and it is continuous nature is called revenue expenditure.