Which of the following would not typically be classified as a discretionary cost?
A)Equipment depreciation.
B)Management development programs.
C)Advertising and promotion.
D)Research and development costs.
E)Contributions to charitable organizations.

Question

Quizplus · Accepted Answer

Equipment depreciation is a fixed cost that cannot be controlled or altered by management decisions, making it a non-discretionary cost. The other options are all discretionary costs, as management has some degree of control over their levels and can choose to increase or decrease them based on their financial priorities.

Which of the Following Would Not Typically Be Classified as a Discretionary