You are participating in a new product evaluation that will result in using one product instead of 3 while allowing for the same clinical outcome. The type of cost savings initiative described here is:

A.Cost containment

B.Cost avoidance

C.Cost Reduction

D.Just in Time

Definitions;

Cost Containment: A detailed plan and process of maintaining organizational cost and purchased prices within certain specified target limits over a period of time.

Cost Avoidance: An effort to prevent or reduce supplier price increases and ancillary charges through the use of value analysis, negotiations, and a variety of other techniques. (Although cost-avoidance efforts prevent increased spending, they do not result in a tangible budget savings and there is a continuing debate over how reporting of cost-avoidance savings should be handled.)

Cost reduction: A reduction in the costs incurred by an organization which has tangible results; i.e., a reduction in outside spend and/or the availability of funds that can be used for purposes other than originally intended