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why to ifferentiate between capital and revenue expenditure?
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Answer / mail
CAPITAL EXPENDITURE IS LONG TREM EXPENDITURE FOR LONG TREM
BENIFIT A COMPANY OR ORGANISTION, REVENUE EXPENDITURE IS
SHORT TREM EXPENDITURE FOR SHORT TREM BENIFIT. CAPITAL
EXPENDIURE ARE LIKE LAND BUILDING ECT. REVENUE EXPENDITURE
LIKE ADMINISTRATIVE EXP. ECT
| Is This Answer Correct ? | 8 Yes | 0 No |
Answer / satheesh
Capital & Revenue expendeture both are different. We incur
capital expendeture for long-term obligation , revenue
expendeture for short-term obligations.
| Is This Answer Correct ? | 4 Yes | 0 No |
Answer / teja
capital expenditure is the expenditure incurred on long
term assets which gives us long term benifit mainly results
in acquisition of an asset ex:expenditure incurred on
goodwill,copyright.where as revenue expenditure is incurred
on short term assets mainly to maintain the earning
capacity or productivity of a business ex:repairs,rent
| Is This Answer Correct ? | 2 Yes | 1 No |
Answer / diwakar grover
CAPITAL EXPENDITURE
Outlay resulting in the increase or acquisition of an asset
or INCREASE in the earning capacity of a business
REVENUE EXPENDITURE
Outlay as is necessary for the MAINTENANCE of earning
capacity including the upkeep of the fixed assets in a fully
efficient state.
| Is This Answer Correct ? | 1 Yes | 2 No |
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The following suggestions are under consideration: (a) 10% reduction in price to yield an increase in sales volume from 6600 to 7400 units. Current unit price Rs. 1,000 Unit variable cost Rs. 500 Fixed cost Rs. 30,00,000 Prepare a statement comparing gross revenue, profit, contribution and P/V ratio of the two alternatives with present results. Which suggestion would you recommend?
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