Question: When you see the term "avoidable cost" or "cost avoidance", just think of it as a savings. If we pursue a certain decision, there might be a savings that is reaped from that decision, and that's an avoidable cost. Also note that when performing an incremental analysis for a business decision, an avoidable cost is considered relevant. Any savings that result from a decision are relevant have you ever heard the phrase "a penny saved is a penny earned"?? Can anyone think of any other examples of avoidable costs that might occur in any sort of business environment and scenario?