Consider the following statements:
The objective of value analysis is :
1. to reduce the cost
2. to increase the profit
3. to improve quality
Which of the statements given above are correct ?
Option (A)
Only 1 and 2
Option (B)
Only 1 and 3
Only 2 and 3
1, 2 and 3
Correct Option:
Question Solution:
Value: It differs from both price & cost in same that it is cost of proportionate to the function
\ Value = (Function (or utility) / Cost)
If can therefore seen that value of a product can be increased either by increasing its utility with the same cost or decreasing its cost for the same function.