A cost that is traceable to a segment through activity-based costing is always an avoidable cost for decision making.

Traceable

Refers to costs or expenses directly associated with a specific department, product, or project, making it easy to assign them accurately.

Activity-based Costing

A costing methodology that assigns overhead and indirect costs to specific products or activities based on their consumption.

Avoidable Cost

A cost that can be eliminated by choosing one alternative over another in a decision. This term is synonymous with differential cost and relevant cost.