Accounting JAMB

Expenditure incurred on consumables and goods for resale is?

A. revenue expenditure
B. capital expenditure
C. sunk cost
D. miscellanous expenses

Correct Answer:

Option A – revenue expenditure

Explanation

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.

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