Gemini Group arranged motor tune-ups and oil changes for their entire fleet of company vehicles during the third quarter. Be sure you list this spending as a revenue expenditure.
The phrase "revenue expenditure" describes expenses a business makes as part of normal operations, the benefit of which will be realized in the same time frame. Rent, utilities, salaries, insurance, commissions, manufacturing, legal, and mailing and printing charges are a few examples of such expenses.
Essentially, there are two kinds, one of which is related to the cost of sales.
The other has a connection to Opex. Cost of sale is the price paid for goods or services that must be made available for sale, whereas operating expense is the price paid to keep a business running efficiently.
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