Avoided Cost
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 |