What type of expenditure is associated with long-term benefits?

Capital expenditure is associated with long-term benefits because it involves spending on assets that will provide value over an extended period, typically more than one year. This type of expenditure includes investments made in physical goods such as property, equipment, and infrastructure. For instance, purchasing machinery for a factory is a capital expenditure, as it is expected to enhance productivity and revenue generation over its useful life.

In contrast, revenue expenditure refers to short-term costs that do not yield long-term benefits, typically covering day-to-day operational expenses, such as salaries and utilities. Miscellaneous expenditure tends to cover costs that are not easily categorized and usually pertains to sporadic or unforeseen expenses, lacking the planned long-term impact associated with capital investment. Operating expenditure refers to the costs necessary for the ongoing operations of a business and similarly addresses short-term operational needs rather than investing in long-term assets.

Thus, capital expenditure is distinctly characterized by its role in enhancing future productivity and growth, making it the correct choice.