How is value-engineering relevant to a well done customer profitability analysis, especially when an ABC system is utilized to calculate customer profits (or losses)?
A) ABC will satisfy GAAP and provide input into value-engineering decisions
B) ABC offers the opportunity to analyze the costs of activities assigned to each customer and to determine if improvements can be made to optimize profits
C) customer profitability analysis will reveal that the cost drivers of less profitable customers are the problem and that value-engineering is the solution
D) Only value-added activities will be shown in the cost analysis and thus all other costs will be eliminated via value-engineering

Question

Quizplus · Accepted Answer

The Answer is B

How Is Value-Engineering Relevant to a Well Done Customer Profitability