Answer (A) is correct . Value engineering is a means of reaching targeted cost levels. It is a systematic approach to assessing all aspects of the value chain cost buildup for a product.
Answer (B) is incorrect because Life-cycle costing is a basis for cost planning and product pricing.
Answer (C) is incorrect because Process value analysis is a way of understanding how a company generates its output.
Answer (D) is incorrect because Activity analysis determines what is done, by whom, at what cost in time and other resources, and the value added by each activity.
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