avoidable costs


avoidable costs
Costs that will not be incurred if a particular course of action is not taken. For example, if a specific product is not produced, certain material and labour costs may be avoided. Variable costs are often avoidable costs, whereas fixed costs, such as business rates, are not avoidable in the short term. See also relevant cost

Big dictionary of business and management. 2014.

Look at other dictionaries:

  • avoidable costs — Costs that are not incurred if a particular course of action is taken or an alternative decision is made. For example, if a specific product is not produced, material and labour costs may not be incurred. In this instance material and labour… …   Accounting dictionary

  • avoidable costs — plural noun (economics) Costs which arise exclusively from investment or production decisions and which would not be incurred if no output took place • • • Main Entry: ↑avoid …   Useful english dictionary

  • Avoidable Cost — An expense that will not be incurred if a particular activity is not performed. Avoidable cost refers to variable costs that can be avoided, unlike most fixed costs, which are typically unavoidable.While avoidable costs are often viewed as… …   Investment dictionary

  • avoidable cost — An item of expenditure incurred at the discretion of the management of an organization. In contrast to a *sunk cost, an avoidable cost can be incurred or avoided on the basis of a management decision. For example, potential rental fees for… …   Auditor's dictionary

  • avoidable — a|void|a|ble [ ə vɔıdəbl ] adjective capable of being prevented: The tragedy is that the conflict was largely avoidable. avoidable costs/mistakes/errors …   Usage of the words and phrases in modern English

  • avoidable — UK [əˈvɔɪdəb(ə)l] / US adjective capable of being prevented The tragedy is that the conflict was largely avoidable. avoidable costs/mistakes/errors …   English dictionary

  • avoidable — [əˈvɔɪdəb(ə)l] adj capable of being prevented Ant: unavoidable avoidable costs/mistakes/errors[/ex] …   Dictionary for writing and speaking English

  • Sunk costs — In economics and business decision making, sunk costs are retrospective (past) costs that have already been incurred and cannot be recovered. Sunk costs are sometimes contrasted with prospective costs, which are future costs that may be incurred… …   Wikipedia

  • Irrelevant costs — The costs incurred last year (material, labour, and overheads) are not relevant to the decision. They are examples of past (sunk) costs. The original costs are not avoidable and are common to all alternatives …   Accounting dictionary

  • Ontario electricity policy — refers to plans, legislation, incentives, guidelines, and policy processes put in place by the Government of the Province of Ontario, Canada, to address issues of electricity production, distribution, and consumption. Policymaking in the… …   Wikipedia