Answer (D) is correct . Systematic evaluation of the trade-offs between product functionality and product cost while still satisfying customer needs is the definition of value engineering.
Answer (A) is incorrect because Activity-based management (ABM) is the linkage of product costing and continuous improvement.
Answer (B) is incorrect because The theory of constraints (TOC) is a system to improve human thinking about problems. The basic premise of the theory of constraints as applied to business is that improving any process is best done not by trying to maximize efficiency in every part of the process, but by focusing on the slowest part of the process, called the constraint.
Answer (C) is incorrect because Total quality management (TQM) is used by management to improve operations throughout the value chain to deliver products and services that exceed customer expectations.
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