Janice's Kennel and Pet Spa is located in Sydney. The company employs three pet attendants, four pet groomers and two front office staff who book appointments and keep records. The spa provides a range of services for dogs and cats including boarding, grooming, and obedience training. The grooming area includes a small retail section that carries dog and cat food, pet supplies, and toys. Which of the following is the best example of a discretionary cost for Janice's Kennel and Pet Spa?
A) Pet food
B) Facility rent
C) Wages of pet groomers
D) Professional travel for Janice

Question

Quizplus · Accepted Answer

Discretionary costs are expenses that are not essential to the operation of a business and can be reduced or eliminated without significantly affecting the business. Professional travel for Janice would be considered discretionary as it is not essential to the daily operation of the kennel and spa. The other options (pet food, facility rent, wages of pet groomers) are all essential costs for the business to function.

Janice's Kennel and Pet Spa Is Located in Sydney