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The expenses leading to the increment in...

The expenses leading to the increment in production capacity are which type of expenses ?

A

A)Revenue Expenditure

B

B)Production Expenditure

C

C)Investment Expenditure

D

D)Capital Expenditure

Text Solution

Verified by Experts

The correct Answer is:
C

The expenses leading to the increment in production capacity are Investment expenditure. It is the expenditure that an organisation makes for the creation of the new assets like machinery, building etc.
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Study the following information carefully and answer the given questions: In the year 2015, the salary expense of a company is 16 lakhs and the total number of employees is 80 and in the year 2016, the average salary of employees is Rs. 4000 more than the previous year. The salary expense in 2016 is 20% more than the previous year. Theother expense in the year 2016 is 34 lakhs. The total expense in the year 2015 and 2016 is same. In the year 2017, the number of employees is 5 less than the previous year. The average salary of employees in the year 2017 is Rs. 15000 and the other expense in the year 2017 is Rs. 47.75 lakhs. Note: Salary expense = Average salary of employees * Number of employees Total expense = Salary expense + other expense The total expense in the year 2015 is approximately what percentage of total expense in the year 2017?

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