Question

"The cost of sugarcane is an avoidable cost." Justify for or against.

Answer 1

1. If sugarcane is a direct input for sugar production, the cost is directly proportional to the output.
2. When production ceases, the cost of sugarcane can be avoided.
3. Avoidable costs are those that can be avoided by refraining from carrying out a specific activity or choice.
4. Purchasing sugarcane is unnecessary when shutting down sugar production; hence, the cost can be avoided.
5. This makes sugarcane costs preventable because they may be managed by deciding whether or not to manufacture sugar.