Discretionary costs arise from periodic (usually annual) decisions and have a measurable cause-and-effect relationship between output and resources used.

Question

Quizplus · Accepted Answer

Discretionary costs are not directly tied to a measurable cause-and-effect relationship between output and resources used; they are determined by management decisions and can vary, such as advertising or research and development expenses.

Discretionary Costs Arise from Periodic (Usually Annual) Decisions and Have