Avoidable costs are eliminated when a product is outsourced.

Name: Avoidable costs are eliminated when a product is outsourced.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Avoidable costs are those costs that can be eliminated if a particular decision is made, such as outsourcing a product. When a company decides to outsource, it no longer incurs the costs associated with producing that product in-house, such as direct labor, materials, and certain overheads.

Avoidable Costs Are Eliminated When a Product Is Outsourced