Value engineering is an outgrowth of target costing.

Question

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Value engineering originated during World War II as a method to replace scarce materials or components with more readily available ones without sacrificing performance. It is focused on improving the value of products, identifying and removing unnecessary costs. Target costing, on the other hand, is a pricing method used to manage costs with the aim of meeting a full cost objective, starting from a competitive market price. While both aim at cost reduction and efficiency, value engineering is not an outgrowth of target costing; they are distinct concepts developed for different purposes.

Value Engineering Is an Outgrowth of Target Costing