Eliminating non-value added activities by reducing their cost drivers, is referred to as
A)value-added pricing.
B)value-added activity base pricing.
C)cost incurrence costing.
D)price engineering.
E)value engineering.

Question

Quizplus · Accepted Answer

Eliminating non-value added activities by reducing their cost drivers is referred to as value engineering. This involves analyzing processes and activities to identify areas of waste and inefficiency and finding ways to streamline or eliminate them, ultimately reducing costs and improving overall value. Value-added pricing and activity-based pricing are pricing strategies, while cost incurrence costing focuses on recording and reporting costs, and price engineering involves adjusting prices to meet market demands.

Eliminating Non-Value Added Activities by Reducing Their Cost Drivers, Is