A service organization is exploring the application of value analysis/engineering. How can value management contribute to the enhancement of services? Question 13Answer a. By reducing fixed costs to improve efficiency. b. By eliminating all production costs for maximum value. c. By considering both cost and function to enhance value. d. By focusing solely on reducing variable costs.
The correct answer is:
c. By considering both cost and function to enhance value.
Value management focuses on improving the value of services by analyzing the functions of those services and their associated costs, ensuring that the organization delivers maximum value to its customers while maintaining efficiency.