If a business decides to buy a part instead of making it, the costs of raw materials used in producing the part are avoidable costs.

Question

Quizplus · Accepted Answer

Avoidable costs are expenses that can be eliminated if a particular decision is made. In this case, if a business decides to buy a part instead of making it, the costs of raw materials needed to produce the part themselves are no longer necessary and can be avoided.

If a Business Decides to Buy a Part Instead of Making