CA – ‘Cost Avoidance’ refers to maintaining current spending in cases where future higher spending would result if mitigation action were not taken.

This should not be confused with ‘Cost Reduction’, which occurs when a decreased change in spending is made due to the selection of less expensive components within a product.

Good Obsolescence Management normally results in ‘Cost Avoidance’ as it results in a far lower future expenditure for a product should an item become obsolete or otherwise become difficult to source.

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