According to William Pickles “Revenue expenditure can be described as such outlay as is necessary for maintenance of earning capacity, including the upkeep of fixed assets in a fully efficient state, and the normal total cost involved in selling, including the cost of goods and services of the business to which it relates.”
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Revenue expenses may be classified as:
- It includes price for purchases, carriage, freight, duties and clearing charges etc. On purchases, incurred upto getting the goods to the custody of the business.
- These include cost of raw materials consumed, wages, power, lighting and heating etc.
- These include expenses incurred on fixed assets for repairs or servicing etc.
- They include salaries, printing, stationery, telephone, postage, legal expenses etc.