Systematic Appraisal of the Design,quality,and Performance Requirements of a Product

question 194

Multiple Choice

systematic appraisal of the design,quality,and performance requirements of a product to reduce purchasing costs is referred to as

• A) cost analysis.
• B) a make-buy decision.
• C) value analysis.
• D) procurement analysis.
• E) a buy class decision.

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Definitions:

Desired Return

Desired return refers to the expected financial gain or profit an investor aims to achieve from an investment over a specific period.

Investment

Investment refers to the allocation of resources, typically financial, in assets or projects with the expectation of earning a return.

Target Cost

The maximum amount that can be spent on a product while still earning the desired profit margin, usually determined during the design and development stages.

Investment

Assigning financial resources with the aim of achieving returns or making a profit.