Question: An avoidable cost is a cost that can be avoided if an opportunity is not taken up. These are relevant costs as they are directly

An avoidable cost is a cost that can be avoided if an opportunity is not taken up. These are relevant costs as they are directly attributable to the decision to take up an opportunity. In contrast, an unavoidable cost is one that will be incurred regardless of whether the decision in relation to a particular proposal is accepted or rejected. Unavoidable costs are irrelevant in decision making.

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