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Investments glossary

Discretionary Expense


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Quotes of the day:

Early morning hath gold in its mouth.

— Benjamin Franklin

A discretionary expense is a cost that a business or household can get by without, if necessary. These expenses are often defined as things that are wants rather than needs. For example, a business may allow employees to charge certain meal and entertainment costs to the company. This is done in order to promote goodwill with employees, rather than to ensure the firm’s survival.


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