If the projected cost for a new product to be manufactured exceeds the target cost,what measures can the company undertake to reduce the projected cost?
A) kaizen costing
B) value engineering
C) supplier negotiations
D) all of the above

Question

Quizplus · Accepted Answer

All of the options mentioned can be effective ways for a company to reduce the projected cost of manufacturing a new product if the cost exceeds the target cost.

- Kaizen costing involves continuous improvement efforts to identify and eliminate waste in the manufacturing process, which can help lower costs.
- Value engineering focuses on analyzing the design and function of a product to find ways to produce it more efficiently and cost-effectively, without sacrificing quality or performance.
- Supplier negotiations can help companies lower costs by negotiating better prices for raw materials or components, or by finding alternative suppliers that offer more competitive prices.

Combining all of these approaches can help a company identify and address cost issues from multiple angles, which can be effective in reducing the overall projected cost of manufacturing a new product.

If the Projected Cost for a New Product to Be