An avoidable cost is a cost that can be eliminated (in whole or in part)by choosing one alternative over another.

Question

Quizplus · Accepted Answer

Avoidable costs are costs that can be avoided by choosing one alternative over another. These costs can be eliminated by changing the decision or action taken. For example, if a company decides to produce a product in-house rather than outsourcing it, the cost of production in-house is an avoidable cost because the company could have avoided it by outsourcing.

An Avoidable Cost Is a Cost That Can Be Eliminated