The most likely example of a discretionary cost item is:
A) taxation
B) council rates
C) research and development costs
D) management salaries

Question

Quizplus · Accepted Answer

Research and development costs are considered discretionary because they are costs that management can decide whether to incur or not, based on strategic decisions, unlike fixed obligations such as taxation, council rates, or management salaries.

The Most Likely Example of a Discretionary Cost Item Is