The difference between discretionary costs and nondiscretionary costs is that discretionary costs are less controllable.

Question

Quizplus · Accepted Answer

Discretionary costs refer to expenses that a company incurs voluntarily, such as marketing expenses or employee training. These costs are more controllable as the company can choose to reduce or eliminate them. On the other hand, nondiscretionary costs are essential expenses that a company must incur, such as rent or insurance. These costs are less controllable as they are necessary for the company's operations.

The Difference Between Discretionary Costs and Nondiscretionary Costs Is That