In the process of __________, the estimated cost of each element in the cost plan is compared with the perceived value of that element to consider if the sum allocated to that component part of the building is justified.
A)budget analysis
B)budget accounting
C)value analysis
D)value accounting

Question

Quizplus · Accepted Answer

Value analysis is a method of analyzing the value of each component part of a building or project. In this process, the cost of each element in the cost plan is compared with the perceived value of that element. If the cost of a particular component part is deemed to be higher than the value it adds to the project, then the budget for that component part may need to be reevaluated. Therefore, value analysis helps to ensure that the allocated budget is justified for each component part of the building.

In the Process of __________, the Estimated Cost of Each