The Purpose of Value Analysis/Value Engineering (VA/VE) Is To

question 33

Multiple Choice

The purpose of Value Analysis/Value Engineering (VA/VE) is to:

• A)Simplify products and processes.
• B)Improve the value that customers find in existing products.
• C)Relate the customer's needs to technical specifications.
• D)Meet budgets and improve the results of financial models.
• E)Facilitate better cooperation between business functions.

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Definitions:

Inventory Valuation

The process of calculating the cost assigned to inventory items to determine the cost of goods sold and the inventory asset value at the end of an accounting period.

Weighted Average

A calculation that takes into account the varying weights or significance of different items in a data set, producing a mean value.

Perpetual Inventory System

A method of inventory management that instantly logs sales or acquisitions of inventory using computerized point-of-sale systems and software for managing enterprise assets.

Inventory Valuation

The method used to calculate the cost associated with an inventory at the end of a financial period, affecting cost of goods sold and gross profit.