The strategy in which companies systematically evaluate all aspects of the value-chain business functions with the objective of reducing costs to meet customers' needs is referred to as
A)full costing.
B)value engineering.
C)designed-in costs.
D)value analysis.
E)cost incurrence.

Question

Quizplus · Accepted Answer

Value engineering is a systematic approach that evaluates all aspects of the value chain business functions to reduce costs while meeting customers' needs. Full costing is a method of costing that considers both variable and fixed costs in determining the cost of a product or service. Designed-in costs are costs that are intentionally designed into a product or service. Value analysis is a systematic assessment of the elements that contribute to the cost of a product or service. Cost incurrence is the process of incurring costs during the production of goods or services. Therefore, option B is the best answer.

The Strategy in Which Companies Systematically Evaluate All Aspects of the Value-Chain