- Are groceries considered discretionary spending?
- Is food a fixed expense?
- What is the difference between maintenance and repairs?
- What is a fixed discretionary expense?
- What type of expense is car repairs?
- What are the 4 types of expenses?
- Is an example of a discretionary fixed cost expense?
- Is repair a direct expense?
- What is an example of a discretionary expense?
Are groceries considered discretionary spending?
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..
Is food a fixed expense?
Fixed expenses are your weekly, monthly, or annual bills that don’t fluctuate. These include things like mortgage or rent payments, car payments, insurance premiums, utility bills, and the average amount you spend on groceries.
What is the difference between maintenance and repairs?
Repairs are restoration work for when something gets broken, damaged or stops working. Maintenance are routine activities meant to prevent damage and prolong the life of appliances, fixtures, and the property itself. Examples include regular cleaning of air-conditioning units, grease traps, repainting, and the likes.
What is a fixed discretionary expense?
A discretionary fixed cost is an expenditure for a period-specific cost or a fixed asset, which can be eliminated or reduced without having an immediate impact on the reported profitability of a business. … The following can be considered discretionary fixed costs: Advertising campaigns.
What type of expense is car repairs?
The costs of owning and operating your business vehicle are allowable business expenses. Expenses for repairs and maintenance are included.
What are the 4 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).
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.
Is repair a direct expense?
Materials which are used for maintenance and repair of machinery, the running of service department, spare and components, packing materials etc. are indirect materials. These do not normally form a part of the finished product.
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.