An expenditure which is consumed during the current period and which affects the income of the current period is called revenue expenditure. Also an expenditure which merely seeks to maintain the business of high assets in good working conditions is revenue expenditure.
(i) Expenses of administration, expenses incurred in manufacturing and selling products.
(ii) Replacements for maintaining the existing permanent assets.
(iii) Costs of goods purchased for resale.
(iv) Depreciation on fixed assets, interest on loans for business, etc.