Revenue Expenditure refers to expenses incurred for the day-to-day operations of a business, the benefits of which are consumed within the same accounting period.
Revenue Expenditure includes costs that are necessary to run the business regularly, such as salaries, rent, electricity, and maintenance. These expenses are fully charged to the profit and loss account in the same year they are incurred.
Unlike capital expenditure, revenue expenditure does not create long-term assets or benefits.
"A company pays ₹50,000 monthly rent for office space—this is revenue expenditure."