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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.
Indirect costs can be fixed or variable costs. Often, they are fixed costs -- an example being the rent you pay on your building. Sometimes, they are variable. An example of a variable cost use your electricity or water bill, which can change monthly.