ECONOMICS

Detailed explanation-1: -An avoidable cost is an expense that will not be incurred if a particular activity is not performed. Avoidable costs refer primarily to variable costs that can be removed from a business operation, unlike most fixed costs, which must be paid regardless of the activity level of a company.

Detailed explanation-2: -How much does it cost to completely outsource IT services? This depends on many factors, but generally you can expect to pay between $80.00 to $150.00 per month per user. Most businesses choose to outsource their IT needs to save money but there are many other benefits as well.

Detailed explanation-3: -An unavoidable cost is an expenditure for which there is a firm spending commitment in the short term. Because of the commitment, it is not possible to sidestep the cost until the commitment period has ended. This type of cost does not factor into short-term operational decisions.

Detailed explanation-4: -An avoidable cost is one that can be eliminated completely depending on the alternative we pick. An avoidable cost is a relevant cost, while unavoidable costs are irrelevant costs. Since we have to pay the mortgage no matter what, we can disregard that cost when we make decisions, right? Let’s look at another example.