discretionary cost definition

discretionary cost

Cost such as that of advertising, preventive maintenance, research and development, that a manager may eliminate or postpone without disrupting the firm's operations or affecting its productive capacity in the short run. A discretionary cost is usually specific in amount, or is determined by a formula such as a certain percentage of sales revenue. Also called discretionary expenditure or managed cost.

discretionary cost is in the Accounting & Auditing and Decision Making, Problem Solving, & Strategy subjects.

discretionary cost appears in the definitions of the following terms: discretionary expenditure and managed cost

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