Question: What Is An Example Of A Non Discretionary Expense?

What is the difference between discretionary and nondiscretionary?

What is the difference between a discretionary and a nondiscretionary bonus.

A nondiscretionary bonus is the opposite of a discretionary one.

The employer predetermines the specific criteria that is required to receive a bonus, and employees expect to earn the bonus if they meet the criteria..

What are discretionary items?

Discretionary spending refers to non-essential items, such as recreation and entertainment, that consumers purchase when they have enough income left over after paying the necessary expenses such as the mortgage and utilities.

Is rent a discretionary expense?

While rent, mortgage payments, and groceries are necessary, discretionary expenses are those you incur voluntarily such as dining out or cable television. Your discretionary spending budget is only as big as the income you have available to fund it.

What are optional expenses?

“Optional” expenses are those you CAN live without. These are also expenses that can be postponed when expenses exceed income or when your budgeting goal allows for it. Examples are books, cable, the internet, restaurant meals and movies.

Which are examples of non discretionary government expenditures?

Non-Discretionary or Mandatory SpendingRent.Groceries.Gas.Utility bills.

What does discretionary pay mean?

A discretionary bonus is extra pay that a company agrees to provide to an employee for specific or unexpected situations. These cash payments are not part of the employee’s contract, and the employee should not expect to receive the bonus regularly.

Is an example of a discretionary fixed cost expense?

Examples of discretionary fixed costs include advertising, research, public relations, management development programs, and internships for students. Discretionary fixed costs can be cut for short periods of time with minimal damage to the long-run goals of the organization.

What is an example of a discretionary expense?

Discretionary expenses are often defined as nonessential spending or, in other words, wants rather than needs. This means a business or household is still able to run even if all discretionary consumer spending stops. Meals at restaurants and entertainment costs are examples of discretionary expenses.

What are non discretionary benefits?

A non-discretionary bonus is a bonus that must be paid out if certain criteria are met. It’s a bonus that is announced and established ahead of time. For example, employees might be told that if they have 100% attendance over a certain period of time, they will receive an attendance bonus.

What is a discretionary day?

The Discretionary Day is an additional holiday with pay which may be authorized annually by the Governor to eligible university support staff, unclassified staff and fiscal year faculty for observance of a religious holiday, family event or other special occasion.

What are the four types of expenses?

You might think expenses are expenses. If the money’s going out, it’s an expense. But here at Fiscal Fitness, we like to think of your expenses in four distinct ways: fixed, recurring, non-recurring, and whammies (the worst kind of expense, by far).

What is discretionary income answers?

Discretionary income is money that is left over after paying your taxes and other living expenses (rent, mortgage, food, heat, electric, clothing, etc). Discretionary income is based and derived on your disposable income.

What is an example of a non discretionary variable expense?

Nondiscretionary expenses are things you must pay for or buy, including the following: Food. Rent or mortgage. Car payments.

What does discretionary mean?

1 : left to individual choice or judgment : exercised at one’s own discretion discretionary powers. 2 : available for discretionary use discretionary income.

What are non fixed expenses?

There are two types of expenses: fixed expenses and non-fixed expenses. Fixed expenses are those that you can be sure of every month, such as your mortgage or car payment. … Non-fixed expenses are variable expenses that can fluctuate from month-to-month.

What are non discretionary items?

3. + New List. Non-Discretionary Items means all real estate taxes, insurance premiums and utilities relating to the Property.