The Strategy in Which Companies Systematically Evaluate All Aspects of the Value-Chain

question 125

Multiple Choice

The strategy in which companies systematically evaluate all aspects of the value-chain business functions with the objective of reducing costs to meet customers' needs is referred to as

• A)full costing.
• B)value engineering.
• C)designed-in costs.
• D)value analysis.
• E)cost incurrence.

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Definitions:

Supply Chain

The interconnected network of entities involved in the production, handling, and distribution of goods or services from manufacturers to consumers.

Supply Chain Surplus

The total value created throughout the supply chain, calculated as the difference between the value of the final product to the end consumer and the costs incurred in bringing the product to market.

Commodity Products

Fundamental products utilized in trade that can be exchanged with other products of a similar kind.

Maximize Revenue

A strategy or approach aimed at increasing the total income generated from sales of goods or services, before any expenses are subtracted.