discretionary costs


discretionary costs
= managed costs
Costs incurred as a result of a managerial decision; the extent of these costs is consequently subject to managerial discretion. A characteristic of such costs is that they are often for a specified amount or subject to a specific formula, such as a percentage of sales revenue. Examples include advertising and research expenditure.

Accounting dictionary. 2014.

Look at other dictionaries:

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  • discretionary costs — managed costs Costs incurred as a result of a managerial decision; the extent of these costs is consequently subject to managerial discretion. A characteristic of such costs is that they are often for a specified amount or subject to a specific… …   Big dictionary of business and management

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  • discretionary spending — ➔ spending * * * discretionary spending UK US noun [U] ► ECONOMICS, FINANCE money spent by consumers on things other than necessary things such as food, clothes, and fuel: »Soaring fuel prices have hit discretionary spending, which could weaken… …   Financial and business terms

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  • managed costs — See: discretionary costs …   Accounting dictionary

  • managed costs — See discretionary costs …   Big dictionary of business and management

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