Question 1
Which of the following is an example of value added cost?
◦ cost of machine breakdown
◦ cost of defective products
◦ rework costs
◦ direct machining costs
Question 2
Which of the following is not a step of value-engineering?
◦ Understanding customer requirements and value-added and non-value added costs
◦ Set a price using the market approach
◦ Anticipating how costs are locked in before they are incurred
◦ Using cross-functional teams to redesign products and process to reduce costs while meeting customer needs