Table of Contents
What is a committed expenditure?
committed expenditure, things like: Loan payments; credit card bills; child maintenance and school fees. basic living costs: includes: Council tax; utilities (gas, electricity & water bills) ; phone bills; cost of travel to work; insurance premiums and food.
Which of the following is an example of committed cost?
Some examples of committed costs are: plant and equipment depreciation, taxes, insurance premium and rent charges. Committed cost is also know as sunk cost, it is cost which has already been incurred in the past.
What are 3 examples of expenditure?
Expenditure Example
| S. No | Expenditure Type | Expenditure Classification |
|---|---|---|
| 1 | Purchase of raw materials | Revenue Expenditure – Direct |
| 2 | Electricity bills | Revenue Expenditure – indirect |
| 3 | Advertising expenses | Revenue Expenditure – indirect |
| 4 | Direct labor costs | Revenue Expenditure – Direct |
What are the two types of expenditures?
Types of Expenditures in Accounting
- Capital Expenditure. A company incurs a capital expenditure. (CapEx) when it purchases an asset with a useful life of more than 1 year (a non-current asset).
- Revenue Expenditure. A revenue expenditure occurs when a company spends money on a short-term benefit (i.e., less than 1 year).
Is Labour a committed cost?
There are also obligations has made by the business, which cannot get back. According to sentence “Committed costs are fixed future streams of expenditures. In management cuts the workforce because of a drop in demand, labor cost is variable; otherwise it is fixed.” (R.L. Weil, M.W.
What is expenditure type?
An expenditure type is a classification of cost that you assign to each expenditure item you enter in Oracle Projects. An expenditure type is made up of four elements: An expenditure category.
How many types of expenditure do we have?
There are two categories of expenditures which are: Revenue Expenditures. Capital Expenditures.
What are the classification of expenditures?
Why is it called revenue expenditure?
Revenue expenditures are short-term expenses used in the current period or typically within one year. Revenue expenditures include the expenses required to meet the ongoing operational costs of running a business, and thus are essentially the same as operating expenses (OPEX).