ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Discretionary expenses are often defined as nonessential spending. This means a business or household is still able to maintain itself even if all discretionary consumer spending stops. Meals at restaurants and entertainment costs are examples of discretionary expenses.

Detailed explanation-2: -A discretionary expense is a non-essential expense that is incurred by an individual, household, or business. Another way to think of discretionary expenses is to classify them as “wants” instead of “needs.” A common example is when an individual purchases a new smartphone whenever the latest edition comes out.

Detailed explanation-3: -A discretionary expense is voluntary spending. You want to buy something, but it isn’t mandatory. Entertainment and recreational purchases fall into this category. On the other hand, bills such as rent, home loan payments and utilities are nondiscretionary expenses.

Detailed explanation-4: -Taxes. Employee salaries. Debts repayments (including loans and mortgages) Rent. Utility bills (including Internet costs) Inventory (especially for retail and other businesses that sell physical goods) Software that directly powers your business. More items •27-Jun-2022