Types of Revenue Expenditure
The two types of revenue expenditure are Direct Expense and Indirect Expense.
1. Direct Expense: The expense that arises from the production of raw material to the final goods/services is known as Direct Expense. For example, shipping costs, electricity bills, commission, factory rent, power, labor wages, etc.
2. Indirect Expense: The expense that indirectly arises through the sale of goods/services and their distribution is known as Indirect Expense. For example, depreciation on machinery, telephone bills, etc.