In a decision to add or eliminate a product or service, which of the following is an avoidable cost?
A)Common costs
B)Depreciation
C)Variable overhead
D)Allocated overhead

Question

Quizplus · Accepted Answer

Variable overhead is considered an avoidable cost because it changes with the level of production or service delivery. If a product or service is eliminated, the variable overhead associated with it can typically be avoided.

In a Decision to Add or Eliminate a Product or Service