One Significant Area Where Value Engineering Has Produced Impressive Results

question 5

Multiple Choice

One significant area where value engineering has produced impressive results is with regard to ______.

• A)reducing costs of inputs into a product
• B)the information technology in product manufacture
• C)analyzing the market to ensure customers receive value
• D)reducing the cost of reverse logistics

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Definitions:

Interest Rate

The percentage of an amount of money charged by a lender to a borrower for the use of assets.

Effective Interest Rate

A measure of the real cost of borrowing that takes into account the effect of compounding interest in addition to the nominal rate.

Compensating Balance

Compensating Balance is a minimum bank account balance that a borrower must maintain as part of a loan agreement, often used by banks as a requirement for extending a loan.

Interest Rate

The percentage of principal charged by the lender for the use of its money or the return earned on deposited funds.