3) Costing Techniques

Question 1

ValueEngineering, define

Answer 1

Redesign of an activity, product or service so that the value to the customer is enhanced while costs are reduced or at least increased less than the resulting price increase

Question 1

Porter’s Value Chain, define

Answer 1

Analysis of the value creating activities within an organisation with the objective of evaluating a firm’s ability to achieve a competitive advantage

Question 2

Value Analysis, define

Answer 2

Systematic interdisciplinary examination of the factors affecting the cost of a product or service and the value placed on those factors by customers