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what type of costs are immediately recorded as an expense?

what type of costs are immediately recorded as an expense?
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Answer #1

Ans: Revenue Expenditure, is a cost which is recorded as an expense as soon as it is incurred.

Explanation:

1) Revenue Expenditure are those expense which are incurred to maintain the day to day operation of business.

2) Examples:

  • Rent
  • Salaries
  • Office supplhes
  • Utilities

3) As per., matching principle, it is recognized in the period, in which its incurred.

4) Other type of cost is capital expenditure which is not expensed'immediatley as they are incurred for future revenue generation .

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