How does value management differ from cost reduction? Question 2Answer a. Value management focuses on reducing fixed costs. b. Cost reduction aims to eliminate variable costs. c. Value management considers both cost and function to enhance value. d. Cost reduction is only applicable to manufacturing industries.
The correct answer is:
c. Value management considers both cost and function to enhance value.
Value management is a systematic approach that seeks to improve the value of a product or service by analyzing its functions and costs, while cost reduction primarily focuses on lowering costs without necessarily considering the impact on value or functionality.