What is the difference between Cost Avoidance and Cost Savings?

• A. Cost Avoidance reduces current cash outlays; Cost Savings reduces potential future requirements
• B. Cost Avoidance and Cost Savings are interchangeable terms
• C. Cost Avoidance reduces a future anticipated requirement; Cost Savings reduces an already approved program
• D. Cost Avoidance increases an already approved program; Cost Savings increases a future requirement

Answer: (C)