both
discretionary expenses means in short word expenses on self wants or needs in company or home.
Discretionary cost is that amount which is at somebody's discretion like manager etc. Controllable cost is that amount which is in the hands of management to be controlled or not like advertisement expenses etc.
Discretionary income is calculated by taking your gross income minus your expenses and what you are left with is discretionary income. Most Americans do not have a large amount of discretionary income.
transportation costs entertainment
transportation costs entertainment
When budgeting for your immediate needs, you should divide them intoA.immediate and discretionary expenses.B.fixed and immediate expenses.C.discretionary and fixed expenses.D.fixed and intermittent expenses.
Flexible expenses and discretionary spending are similar in that both can be adjusted based on individual financial situations and priorities. Flexible expenses, such as groceries and utility bills, can vary month to month, while discretionary spending includes non-essential purchases like entertainment and dining out. Both categories allow for personal choice and can be modified to accommodate changing financial needs or goals. Essentially, they both contribute to the overall management of a budget by providing areas where spending can be controlled.
Discretionary Income
Expenses may be categorized into several types, including fixed expenses, which remain constant over time (like rent), and variable expenses, which fluctuate based on consumption (like utilities). They can also be classified as discretionary expenses, which are non-essential (like entertainment), and non-discretionary expenses, which are necessary (like groceries). Additionally, expenses can be categorized by their purpose, such as operating expenses related to daily business functions or capital expenses for long-term investments.
Discretionary income is calculated by subtracting necessary expenses from gross income. First, determine your gross income, which includes all earnings before taxes and deductions. Then, identify and sum up necessary expenses, such as housing, utilities, food, and transportation. Finally, subtract the total necessary expenses from your gross income to find your discretionary income, which represents the amount available for non-essential spending or savings.
To meet fixed expenses and allow for discretionary spending
To meet fixed expenses and allow for discretionary spending.