Definition
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.
Related Articles
- Introduction to the Federal Reserve and its Structure *
- Fraud and Dispute Resolution *
- Introduction to Taxes and Basic Information *
- Different Types of Financial Advisors *
- Financing Your Small Business - Writing a Business Plan *
- What is a Savings and Loan Association? *
- Long-Term Investment Choices *
- "Buy Put" Stock Option Investment Strategy *
Related Videos
http://www.businessdictionary.com/definition/discretionary-cost.html
