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

question 24

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:

Opportunity Cost

The lost benefit that could have been enjoyed if the chosen option had not been taken, implying the trade-off of forgoing the next best alternative.

Efficient Production Process

A method of production that uses the least amount of resources to achieve the maximum output.

Resources And Technology

The combination of natural resources, human resources, and technology that firms use to produce goods and services.

Opportunity Cost

The cost of an alternative that must be forgone in order to pursue a certain action; the benefits you could have received by taking an alternative action.