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Term: Accounting -> Avoidable cost
Term:

Avoidable cost

Definition:

Avoidable cost is the amount of expense that would not occur if a particular decision were to be implemented (e.g., if an employee is laid off at a company that is self-insured for unemployment compensation, the avoidable cost is total direct salary less payments for unemployment benefits plus savings in employee benefits).

Related terms:

Dividends in arrears

Payback period
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