Discretionary costs have two important features.The first feature arises from periodic decisions regarding the maximum amount to be incurred.The second feature is it has no measurable cause-and-effect relationship between output and ________.

Question

Quizplus · Accepted Answer

Discretionary costs, such as research and development, advertising, and public relations, often do not have a direct, measurable cause-and-effect relationship between the level of output or sales and the resources used. These costs are subject to management's discretion in terms of the amount to be spent.

Discretionary Costs Have Two Important Features