Which of the Following Is an Objective of Value Engineering

question 51

Multiple Choice

Which of the following is an objective of value engineering?

• A) to reduce cost by eliminating all value-added activities
• B) to streamline and add non-value added activities
• C) to reduce the total cost of the product
• D) to understand competitors' product design

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Definitions:

Present Value

Today's monetary worth of a prospective money sum or set of cash flow transactions, given a set rate of return.

Annuity

A finance option that grants a regular payment sequence to individuals, chiefly employed as income for retired persons.

Cash Flow

The complete total of funds entering and leaving a business, notably affecting its immediate financial resources.

Interest Expense

The cost incurred by an entity for borrowed funds over a period, which can appear on the income statement as a result of loans, bonds, or credit lines.