Avoidable cost is the cost that can be passing up if certain judgment is in use or not in use. It is more or less cost which is mixed according to the decision that is in use by management. That is all variable cost can be said to be avoidable. While avoidable costs are frequently analyzed as negative costs, they may be essential to accomplish definite objective or thresholds.
Differential Cost Definition: Any cost that differs between alternatives in a decision-making situation. In managerial accounting, this term is synonymous with avoidable cost and relevant cost. Also see Incremental cost. Example: Cost of first alternative = 5000; Cost of second alternative = 4000; Differential
Avoidable Cost Definition: Any cost that can be eliminated (in whole or in part) by choosing one alternative over another in a decision-making situation. In managerial accounting, this term is synonymous with Relevant cost and differential cost.