Avoided Cost

on . Posted in Project Management Engineering

Avoided cost, abbreviated as AC, is an estimated saving based onpreventive measures.

 

Avoided cost Formula

\(\large{ AC =  ARC + PL - PMC }\)
Symbol
\(\large{ AC }\) = avoided cost
\(\large{ ARC }\) = assumed repair cost
\(\large{ PMC }\) = preventive maintenance cost
\(\large{ PL }\) = production losses

 

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