apadua

Metrics & Economics

Cost Avoidance

Cost avoidance is an averted cost increase — one that would have occurred without the procurement action.

Examples. Preventing an announced price increase, holding a price level, additional services at no extra cost.

Why the distinction matters. Doesn't lower current budget.

The evidence problem. Rests on an assumption about what would otherwise have happened — must be documented.

Related terms

Book a meeting

See what apadua can do for your team

Choose a convenient time directly in the booking window.

Get to know the team

Connect with us via LinkedIn or send us a personal message.

Meet the team →