________ is an approach to cost reduction in which components are studied carefully to determine if they can be redesigned, standardized, or made by less costly methods of production.
A) Proposal solicitation
B) General needs description
C) Order-routine specification
D) Cost-benefit analysis
E) Product value analysis

Question

Quizplus · Accepted Answer

The approach described in the question is known as product value analysis, which involves analyzing components to see if they can be redesigned, standardized, or produced more cheaply without compromising quality or function. Options A, B, C, and D do not accurately describe this approach. Proposal solicitation involves requesting proposals from vendors, general needs description outlines the overall requirements for a product or service, order-routine specification refers to the process of ordering and fulfilling goods and services, and cost-benefit analysis is a method of comparing the costs and benefits of different courses of action.

________ Is an Approach to Cost Reduction in Which Components