avoidable cost Definition | Business Dictionaries from AllBusiness.com

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Business Definition for: avoidable cost

avoidable cost

cost that will not be incurred if an activity is suspended; also called escapable cost. For example, it is the cost that can be saved by dropping a particular product line or department (e.g., salaries paid to employees working in a particular product line or department). All costs are avoidable, except (1) sunk cost and (2) costs that will continue regardless of the decision.

escapable cost

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