What is the purpose of using value analysis?

Value analysis. An approach to improving the value of an item or process by understanding its constituent components and their associated costs. It then seeks to find improvements to the components by either reducing their cost or increasing the value of the functions. read more

Eliminating Costs. A critical advantage to using value analysis is its potential for reducing costs, which is a benefit that permeates all advantages of the system. read more

Also called value engineering, its objectives are (1) to distinguish between the incurred costs (actual use of resources) and the costs inherent (locked in) in a particular design (and which determine the incurring costs), and (2) to minimize the locked-in costs. read more

a. Use Value: There are certain characteristics of a product which make it useful for certain purposes. For example, a book of Cost Accountancy if written for ICWA—Inter students, has a use value provided it serves the purpose of such category of students. It measures the quality of performance of a product. read more