What is the objective of process value analysis?
A)to include measures of activities not simply related to increasing profits
B)to establish competitive advantage by creating better customer value for the same cost
C)to efficiently perform necessary and eliminate activities that do not create customer value
D)to improve costing accuracy by emphasizing the activities and tasks that must be performed

Question

Quizplus · Accepted Answer

The objective of process value analysis is to efficiently perform necessary activities and eliminate activities that do not create customer value. This helps in improving overall efficiency and reducing costs without compromising on the quality of the product or service. Option A is incorrect because process value analysis focuses on creating value for customers, which in turn increases profits. Option B is incorrect because while process value analysis can help in creating competitive advantage, its primary objective is to eliminate wasteful activities. Option D is incorrect because process value analysis is not primarily concerned with costing accuracy, but rather with improving efficiency and customer value.

What Is the Objective of Process Value Analysis