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What do you mean by Treatment of Capital and Revenue / Expenditure?
Fixed asset expenditure can be classified briefly into two parts which are Capital Expenditure and Revenue Expenditure. To know the proper treatment of the modification of the expenditure report, the knowledge of both type of expenditures is very important for each student.
Moreover, Capital expenditure is the only factor that gets included in the fixed asset cost.
What are the various factors that Capital expenditure gets affect?
Some common factors included as-
- Purchase costs.
- Delivery costs.
- Legal Charges.
- Installation Costs.
- Up gradation Costs.
- Replacement Costs.
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What some various factors include in Revenue Expenditure?
These are as follows-
- Repair costs.
- Maintenance charge.
- Repairing Costs.
- Renewal expenses.
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