Accounting Dictionary - Letter A

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Avoidable fixed costs
are costs that can be avoided by choosing one alternative over another. For example, if an entity decides to discontinue a product line, all costs related to the product line will not be incurred (i.e., avoided). An example of such costs may include salaries of employees working on the product line.
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