Rachel is assisting the CEO of her small company with a project to reduce electricity usage on the shop floor. This is a strategic engineering economic project focused on:

Question 14 options:

equipment replacement

new product introduction

cost reduction

improvement in service

(c). Cost Reduction

Explanation:

Cost reduction is defined as a business process which aims at reduction in costs and elimination of all unnecessary costs. With reduction in costs, profitability increases.

Cost reduction also calls for efficient use of resources i. e optimum utilization of resources at the same time adhering to quality standards of production

In the given case, Rachel assists her CEO with a project to reduce electricity bills. This is a strategic engineering economic project focused on (c) Cost Reduction.