Which of the Following Is TRUE Concerning Value-Engineering

question 152

Multiple Choice

Which of the following is TRUE concerning value-engineering?

• A)The goal of value-engineering is to eliminate locked-in costs.
• B)After a product's design has been value-engineered, costs are difficult to influence.
• C)When and how costs are locked in are more important than when and how costs are incurred.
• D)Value-engineering does not work when dealing with direct costs.
• E)Value-engineering activities reduce both value-added and non-value-added costs.

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Definitions:

Gross Accounts Receivable

The total amount owed to a company by its customers before deducting any allowance for doubtful accounts.

Accrual Accounting

A financial recording approach in which earnings and expenditures are documented upon being accrued, without considering the timing of the associated cash movements.

Sell Receivables

The process of selling a company's accounts receivable to a third party at a discount in order to obtain immediate cash.

Ending Balance Sheet

A financial statement showing a company's assets, liabilities, and equity at the final moments of an accounting period.