How Is Value-Engineering Relevant to a Well Done Customer Profitability

question 113

Multiple Choice

How is value-engineering relevant to a well done customer profitability analysis, especially when an ABC system is utilized to calculate customer profits (or losses) ?

• A) ABC will satisfy GAAP and provide input into value-engineering decisions
• B) ABC offers the opportunity to analyze the costs of activities assigned to each customer and to determine if improvements can be made to optimize profits
• C) customer profitability analysis will reveal that the cost drivers of less profitable customers are the problem and that value-engineering is the solution
• D) Only value-added activities will be shown in the cost analysis and thus all other costs will be eliminated via value-engineering

Comprehend the roles and characteristics of procedures in an organization.

Grasp the definition, purpose, and scope of operational planning.

Recognize the dependence of various management functions on planning.

Differentiate between operational and strategic plans.

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Definitions:

Conclusion

The end or finish of an event, process, or text; in logic, it is the statement that necessarily follows from the premises of an argument.

Categorical Syllogism

A form of deductive reasoning consisting of three propositions: a major premise, a minor premise, and a conclusion, each of which states a relationship between categories.

Propositions

Statements or assertions that express judgments or opinions which can be either true or false.

Categorical Propositions

Statements in logic that assert or deny something about all or some of the members of a category, involving a subject and predicate and following specific forms.