Operational Accounting
Podcast
Q&A
Dictionary
About
Home
Search the Site
1,000+ Accounting Topics!
View Cart
Controller Library Value Pack
CFO Library Value Pack
Accounting Bestsellers
Accountants' Guidebook
Accounting Controls Guidebook
Accounting for Inventory
Accounting Procedures Guidebook
Bookkeeping Guidebook
Budgeting
Business Ratios Guidebook
CFO Guidebook
Closing the Books
Controller Guidebook
Corporate Cash Management
Cost Accounting Fundamentals
Financial Analysis
Fixed Asset Accounting
GAAP Guidebook
IFRS Guidebook
Lean Accounting Guidebook
Mergers & Acquisitions
Payables Management
Payroll Management
Small Audit Practice Set
Treasurer's Guidebook
Your E-Mail Address *
Receive monthly discounts on accounting CPE courses & books
Follow us on Facebook
An avoidable cost is a cost that can be eliminated by not engaging in or no longer performing an activity. For example, if you choose to close a production line, then the cost of the building in which it is housed is now an avoidable cost, because you can sell the building. The avoidable cost concept is crucial when engaging in cost reduction activities.