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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.
Both retrospective and prospective costs may be either fixed (continuous for as long as the business is in operation and unaffected by output volume) or variable (dependent on volume) costs. However, many economists consider it a mistake to classify sunk costs as fixed or variable..For example, if a firm sinks $1 million on an enterprise software installation, that cost is sunk because it was a one-time expense and cannot be recovered once spent. common example of a sunk cost for a business is the promotion of a brand name. This type of marketing incurs costs that cannot normally be recovered. It is not typically possible to later demote one's brand names in exchange for cash. A second example is R&D costs.