What does avoidable mean?
Avoidable means "capable of being avoided", or "capable of being made invalid".
Avoidable Cost = These are those costs which can be avoidable by doing or not doing any particular activity For Example :Direct Costs Unavoidable Costs = These are those costs which are not avoidable whether do or donot initiate any activity For example: Fixed Cost But sometimes fixed costs are also avoidable or unavoidable by doing or not doing any activity in these cases fixed costs are also avoidable costs.
In case that company uses its equity from retained earnings or contributed capital in addition to borrowed funds to carry out the project, it is possible the avoidable interest is greater than actual interest. Due to the calculation method for avoidable, where you multiple the weighted average interest rate for other borrowing by the rest of the funds used for the project plus the specific funds borrowing interest cost to get the avoidable cost, it…
I think that avoidable cost is the cost that can be avoided if certan decision is taken or not taken. It is more or less cost which is varied according to the decision taken by management. That is all variable cost can be said to be avoidable On the other hand unavoidable cost is that cost which cannot be avoidable at least for the short term. This means that unavoidable cost can be said to…
This is how I see it: Inevitable = Not Avoidable now or ever. Unavoidable = Not Avoidable now, but is or was avoidable at some point. For example: The saying goes "Death and Taxes are inevitable", (but that's wrong). You are born and one day you die, death is Inevitable. You may try to avoid paying taxes, but it's incredibly difficult, therefore Taxes are Unavoidable, but not quite Inevitable.
Avoidable or escapable costs are those costs which can be avoided by stop doing or start doing any particular activity and unavoidable costs are those costs which cannot be avoidable whether activity is done or not. For Example all variable costs are avoidable costs and fixed costs are unavoidable costs but this is general criteria to explain but not always all fixed costs are unavoidable.