When you see the term avoidable cost or cost avoidance just


Question: When you see the term "avoidable cost" or "cost avoidance", just think of it as a savings. If we pursue a certain decision, there might be a savings that is reaped from that decision, and that's an avoidable cost. Also note that when performing an incremental analysis for a business decision, an avoidable cost is considered relevant. Any savings that result from a decision are relevant have you ever heard the phrase "a penny saved is a penny earned"?? Can anyone think of any other examples of avoidable costs that might occur in any sort of business environment and scenario?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: When you see the term avoidable cost or cost avoidance just
Reference No:- TGS02561288

Expected delivery within 24 Hours