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ACCA Applied Knowledge · Management Accounting · Cost reductions and value enhancement

Which of the following is a typical step or feature of value engineering rather than a limitation of it?

Customers and designers working together to identify which functions matter most is a feature of value engineering. The other options describe drawbacks, namely possible quality loss, launch delays and the time and expense of the exercise.

  1. AIt involves customers and designers cooperating to identify which functions matter mostCorrect
  2. BIt can reduce quality if functions are removed without enough customer research
  3. CIt may delay the launch of the product while alternatives are studied
  4. DIt can be time-consuming and costly to carry out

Explanation

A core feature of value engineering is analysing the functions of the product with input from customers and designers so only unwanted cost is removed. The other three options are recognised drawbacks: quality risk, launch delay and the time and cost of the exercise.

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