An electronics manufacturer is trying to encourage its engineers to design simpler yet innovative products so that overall costs are reduced. Required: How the value-chain function costs (R&D, design, production, marketing, distribution, customer service) would be affected in product redesigning for adding simplicity and innovation. Explain how this decision will affect cost allocation, customer profitability, sales variance and market variance analysis.

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The main effect of redesigning products for simplicity and innovation would be to reduce the costs o... View the full answer