Certified Management Accountant Practice Exam 2025 - Free CMA Practice Questions and Study Guide

Value engineering primarily evaluates the trade-offs between product functionality and cost. This approach focuses on improving the value of a product by analyzing its functions and identifying ways to lower costs while maintaining or enhancing the product's performance and quality.

By examining how each function contributes to the overall value, value engineering helps businesses eliminate unnecessary costs that do not add to the product's desirability or utility. The goal is to deliver the best performance at the lowest total cost, ensuring that products meet customer needs effectively while still being cost-efficient.

The other options pertain to different aspects of business management. Overall profitability looks at the financial performance of the entire company rather than specific product features. Market position deals with how a product is perceived in relation to competitors, and employee productivity focuses on the effectiveness and efficiency of the workforce. While these areas are important for overall business success, they do not align with the specific objective of value engineering.