Costs do not come in a one-size-fits-all category. An understanding of the different cost classifications and how they are used for decision support is a fundamental building block for analyzing and interpreting financial information.
Cost Savings and Cost Avoidance: Why You Should Know the Difference
Cost Savings and Cost Avoidance: Why You Should Know the Difference By: Lianabel Oliver Many companies require their employees to classify the financial benefits of capital investments or organizational initiatives as cost savings or cost avoidance measures. For many non-financial