What is a discretionary example?
The definition of discretionary is something that you use as desired or needed. When you have petty cash available to you to use, the money you spend is an example of discretionary spending.
What are examples of discretionary fixed costs?
Examples of discretionary fixed costs include advertising costs, public relations expenses, employee training and development costs etc.
What is an example of a discretionary purchase?
What is discretionary spending? Discretionary spending refers to non-essential items, such as recreation and entertainment, that consumers purchase when they have enough income left over after paying the necessary expenses such as the mortgage and utilities.
What is the difference between discretionary costs and non-discretionary costs?
Non-discretionary spending is essential and non-negotiable spending defined within a budget. What are Non-Discretionary examples? Examples of these expenses include: rent, food, or mortgage payments. In contrast, discretionary spending refers to non-essential expenses, such as hobbies and travel.
What are discretionary expenses give three examples?
These include:
- Taxes.
- Employee salaries.
- Debts repayments (including loans and mortgages)
- Rent.
- Utility bills (including Internet costs)
- Inventory (especially for retail and other businesses that sell physical goods)
- Software that directly powers your business.
What do mean by discretionary?
left to individual choice or judgment
Definition of discretionary 1 : left to individual choice or judgment : exercised at one’s own discretion discretionary powers. 2 : available for discretionary use discretionary income.
What is a discretionary cost?
A discretionary expense is a cost that a business or household can survive without, if necessary. Discretionary expenses are often defined as nonessential spending. This means a business or household is still able to maintain itself even if all discretionary consumer spending stops.
What is an example of a committed fixed cost?
Fixed costs can be further identified as: Committed fixed costs: These are multiyear organizational investments that cannot be easily changed. Examples of committed fixed costs include investments in assets such as buildings and equipment, real estate taxes, insurance expense and some top-level manager salaries.
Is marketing a discretionary cost?
Marketing. Marketing is a classic example of something that is discretionary but not optional. You simply don’t stand a chance of succeeding without some sort of marketing strategy and a little money to back it up. But what makes most marketing a classic discretionary expense is just how variable it can be.
What are examples of variable expenses?
Examples of Variable Expenses
- Gas.
- Parking fees.
- Groceries.
- Dining out.
- Clothing.
- Personal care expenses.
- Healthcare expenses.
- Home maintenance and repairs.
Is salary a committed fixed cost?
Committed fixed costs: These are multiyear organizational investments that cannot be easily changed. Examples of committed fixed costs include investments in assets such as buildings and equipment, real estate taxes, insurance expense and some top-level manager salaries.