How do you calculate cost avoidance, and why is it valuable?

How do you calculate cost avoidance, and why is it valuable?

• A. Costs avoided through optimization measures (e.g., turning off idle resources); track as a measure of efficiency.
• B. The difference between forecast and actual spend.
• C. The amount of discount received from negotiated contracts.
• D. The total spend excluding taxes.

Answer: (A)