Which of the Following Would Be Considered a Revenue Expenditure

question 50

Multiple Choice

Which of the following would be considered a revenue expenditure?

• A)Purchase of a microcomputer
• B)Installation of a heating system
• C)Addition of a building wing
• D)Replacement of a truck's battery

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Definitions:

Materials Price Variance

The difference between the actual cost of materials and the standard cost, multiplied by the actual quantity of materials used.

Purchasing Agent

An individual responsible for buying goods and services for a company, ensuring the right materials are acquired at the best prices.

Lower Quality

Lower quality typically refers to products or assets that do not meet certain standards or expectations in terms of performance, durability, or reliability.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, multiplied by the standard cost per unit.