Question

Question 3

Which of the following is TRUE concerning value-engineering?

Question 3 options:

1-After a product's design has been value-engineered, costs are difficult to influence.

2-Value-engineering activities reduce both value-added and non-value-added costs.

3-The goal of value-engineering is to eliminate locked-in costs.

4-When and how costs are locked in are more important than when and how costs are incurred.

5-Value-engineering does not work when dealing with direct costs.

Question 4 (1 point)

The three major influences on pricing decisions are

Question 4 options:

1-

competition, costs, and customers.

2-

economic, qualitative, and costs.

3-

variable costs, fixed costs, and mixed costs.

4-

continuous improvement, customer satisfaction, and a dual internal/external focus.

5-

competition, demand, and production efficiency.

Question 9 (1 point)

Survey evidence suggest that most companies use which type of cost when making pricing decisions?

Question 9 options:

5-

1-	variable product costs
2-	cost-plus
3-	manufacturing function costs
4-	variable manufacturing costs
5-	absorption product costing

Answer 1

Answer 3. Option 2 - Value-engineering activities reduce both value-added and non-value-added costs.

Explanation: Value-engineering activities focuses in reduction of costs be it value-added or non-value-added costs

Answer 4. Option 1 - customers, competitors, and cost.

Explanation: Pricing decisions depend upon demands and supply. Where customers & competitors affects the demands side, cost impact the supply side.

Answer 9. Option 2 - cost-plus

Explanation: Most of the company uses a cost-plus approach to determine the price of their products or services. Thus they add the cost of production with desired profit margin to arrive at a price.