Cost avoidance and savings are two important concepts in business that are often confused. Cost avoidance is the process of reducing the cost of goods or services without reducing the quality of the goods or services.

This is done by making changes to the way a business operates, such as streamlining processes, reducing overhead costs, or renegotiating contracts. Cost avoidance is important because it helps a business save money without sacrificing quality.

Savings, on the other hand, is the process of reducing the cost of goods or services by reducing the quality of the goods or services. This is done by cutting back on the number of goods or services purchased, or by purchasing lower quality goods or services.

Savings is important because it helps a business reduce costs without sacrificing quality. The key difference between cost avoidance and savings is that cost avoidance helps a business save money without sacrificing quality, while savings helps a business reduce costs by sacrificing quality.