Cost Minimization Is the Major Focus of Value Engineering

question 87

True/False

Cost minimization is the major focus of value engineering.

Understand various job evaluation methods and systems.

Recognize the relevance of job evaluations to organizational goals and compensation policies.

Identify different compensation strategies such as competency-based pay and strategic compensation.

Understand the legal framework governing wages, pay equity, and compensation policies.

---

Definitions:

Bond Price

The market price at which a bond is traded, reflecting its current value as determined by interest rates, the bond's credit quality, and other factors.

Interest Payments

Payments made to lenders or creditors as compensation for borrowing money, typically calculated as a percentage of the principal amount.

Face Amount

The amount specified on the face of a bond and the amount for which it will sell if the market rate of interest equals the contract rate.

Market Rate

The prevailing interest rate or cost of borrowing expressed as a percentage, available in the financial markets.