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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 change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses that have to be paid by a company, independent of any business activity.It is one of the two components of the total cost of a good or service, along with variable cost.Next Up.n example of a fixed cost would be a company's lease on a building. If a company has to pay $10,000 each month to cover the cost of the lease but does not manufacture anything during the month, the lease payment is still due in full.