Which of the following costs related to the purchase of production equipment would be considered a revenue expenditure?
A)Installation costs for equipment
B)Purchase price of the equipment less the cash discount
C)Repair and maintenance costs during the equipment's first year of service
D)Transportation charges for getting the equipment delivered to the business

Question

Quizplus · Accepted Answer

Repair and maintenance costs during the equipment's first year of service are considered revenue expenditures because they are ongoing expenses necessary to keep the equipment in good working condition and do not increase the useful life or productivity of the equipment.

Which of the Following Costs Related to the Purchase of Production