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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.onsequently, though these costs are classified as discretionary, they should only be reduced when it is absolutely necessary to do so. The following can be considered discretionary fixed costs: 1  Advertising campaigns. 2  Employee training. 3  Investor relations. 4  Public relations.
Definition of fixed cost: A cost that does not vary depending on production or sales levels, such as rent, property tax, insurance, or interest expense. DEFINITION of 'Fixed Cost' A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses that have to... Businesses face two basic types of costs: fixed costs and variable costs.