Revenue expenditures are additional costs of property, plant and equipment that materially increase the assets' life or productive capabilities.

Question

Quizplus · Accepted Answer

Revenue expenditures are costs incurred to maintain or repair property, plant and equipment in order to keep them operational, but they do not increase the life or productive capabilities of the assets. Examples of revenue expenditures include routine maintenance, repairs, and minor upgrades.

Revenue Expenditures Are Additional Costs of Property, Plant and Equipment