A process that involves examining all elements of a component, assembly, end product, or service to make sure it fulfills its intended function at the lowest total cost is:
A)target costing.
B)design to cost.
C)value analysis.
D)examination costing.

Question

Quizplus · Accepted Answer

The process described in the question is value analysis, which involves analyzing all elements of a product or service to ensure that it functions as intended while minimizing cost. Target costing and design to cost are related processes that involve setting a target cost for a product or service and designing it with that cost in mind. Examination costing is not a commonly used term in the field of cost management.

A Process That Involves Examining All Elements of a Component