Cost of Design Ratio

Definition

Engineering cost is the cost of all engineering activities, including changes. This ratio is an indication of the budget allocated to engineering. While the objective is to minimize nonvalue-added cost. Many companies cut engineering costs extensively. More capital should be allocated to engineering and design functions. Also see Research and Development Ratio.

Formula

Tags

change, capital, research, design, engineering, budget, cost

Metadata

Category: VRM Product · Added: May 17, 2026