Cost allocation data could be a valuable input to encourage design of products that are simpler to manufacture and less costly to service.

Question

Quizplus · Accepted Answer

Cost allocation data can help identify the resources and activities that contribute the most to the overall cost of a product or service. By using this information, designers can identify areas where simplification or optimization can reduce costs. For example, if the cost allocation data highlights that a particular component is very expensive to manufacture, designers may look for ways to simplify or redesign that component to reduce costs. Similarly, if the cost allocation data shows that a particular feature or service is very expensive to maintain, designers may prioritize simpler alternatives that are less costly to service. In this way, cost allocation data can promote the design of more cost-effective products and services.

Cost Allocation Data Could Be a Valuable Input to Encourage