Discretionary costs

Discretionary costs is arise from periodic (usually annual) decisions regarding the maximum amount to be incurred and have no measurable cause-and-effect relationship between output and resources used.

Definitions

According to Cost Accounting by Horngren, Datar, Rajan (14th edition),

Discretionary costs. Arise from periodic (usually annual) decisions regarding the maximum amount to be incurred and have no measurable cause-and-effect relationship between output and resources used.