Dictionary of Accounting Terms: 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.
