Sign In
  • cost avoidance

    An action taken in the immediate time frame that will decrease costs in the future. For example, an engineering improvement that increases the mean time between failure (MTBF) and thereby decreases operating support costs can be described as a cost avoidance action. It is possible for the engineering change to incur higher costs in the immediate time frame, however, if the net total Life Cycle Cost (LCC) is less, it is a cost avoidance action. The amount of the cost avoidance is determined as the difference between two estimated cost patterns, one before the change and one after.

    Open in Glossary Explorer
Chat with DAU Assistant
Bot Image