A committed cost is going to occur whether or not you have any output like rent.A discretionary cost is a variable cost like that of raw material.
"A committed fixed cost has a long future planning horizon- more than on year. A discretionary fixed cost has a short future planning horizon-under a year." Source: http://www.drtaccounting.com/2008/08/discretionary-fixed-cost-committed.html Another source: Just got the answer correct for my Accounting quiz!
"A committed fixed cost has a long future planning horizon- more than on year. A discretionary fixed cost has a short future planning horizon-under a year." Source: http://www.drtaccounting.com/2008/08/discretionary-fixed-cost-committed.html Another source: Just got the answer correct for my Accounting quiz!
The main difference between an 30 year mortgage and a 15 year mortgage would be the monthly cost. The 30 year would be cheaper payments but the loan interest would cost more.
The most difference is on cost estimation. In PreFS, cost estimation is based on assumptions while cost estimation in FS is normally based on vendors' offers/proposals, at least for expensive price equipment/materials.
the point at which total cost lines under the two alternatives intersect each other. Cost indifference point is calculated as under: - Difference in fixed costs/ Difference in PV ratio.
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.
"A committed fixed cost has a long future planning horizon- more than on year. A discretionary fixed cost has a short future planning horizon-under a year." Source: http://www.drtaccounting.com/2008/08/discretionary-fixed-cost-committed.html Another source: Just got the answer correct for my Accounting quiz!
"A committed fixed cost has a long future planning horizon- more than on year. A discretionary fixed cost has a short future planning horizon-under a year." Source: http://www.drtaccounting.com/2008/08/discretionary-fixed-cost-committed.html Another source: Just got the answer correct for my Accounting quiz!
difference between cost and costing
Discretionary Cost:Cost such as that of advertisement, research and development that a manager may eliminate without disrupting the firm's operations or affecting its productivity capacity in the short runEngineered Cost:This is the cost which have direct relation with cause or activity like direct material, direct labor etc.
whats the difference between cost and list?
There is no difference
A non-discretionary cost is one that is not completely controllable by you. Typically you may be able to exert a little influence on such costs by understanding and manipulating consumption patterns but you are not able to unilaterally completely eliminate the cost from your cost-base.
what is the difference?
marginal cost
lina
Discretionary cost is an expenditure that eliminated if needed based on judgement. This type of expenditure would have little or no effect on profit which is an advantage to the company.