Fill in the Blank QuestionFill in the blank question.The costs which are eliminated if a segment is eliminated are called costs.

The costs which are eliminated if a segment is eliminated are called avoidable costs.

Explanation: Avoidable costs refer to the expenses that can be eliminated if a particular business segment, product line, or department is no longer in operation. These costs are variable in nature because they directly correlate with the production and sales of goods or services. Common examples of avoidable costs include direct materials, direct labor, and variable overheads. On the other hand, fixed costs like rent or salaries for permanent staff may not change if a segment is removed, making them unavoidable. Understanding which costs are avoidable is crucial for decision-making, especially when assessing the profitability and viability of different segments within a business.