Author Question: How is value-engineering relevant to a well done customer profitability analysis, especially when an ... (Read 110 times)

appyboo · **on:** Mar 6, 2021

How is value-engineering relevant to a well done customer profitability analysis, especially when an ABC system is utilized to calculate customer profits (or losses)?
◦ ABC will satisfy GAAP and provide input into value-engineering decisions
◦ ABC offers the opportunity to analyze the costs of activities assigned to each customer and to determine if improvements can be made to optimize profits
◦ customer profitability analysis will reveal that the cost drivers of less profitable customers are the problem and that value-engineering is the solution
◦ Only value-added activities will be shown in the cost analysis and thus all other costs will be eliminated via value-engineering

nixon_s · **Reply #1 on:** Mar 6, 2021

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