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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.
Some personal finance software lets you set a different amount every month for discretionary and variable expenses. If your software doesn't have flexible budget categories, either set up miscellaneous or other fun money category to plan some amount for discretionary expenses each month.