Cost/function analysis is a core technique within the Management of Value (MoV) methodology used to assess value for money. It involves systematically identifying the functions of a project, product, or service (what it does), and then allocating costs to those specific functions. By comparing the cost of a function to its importance (or worth) to stakeholders, a team can determine which elements, or Value Drivers, offer poor value and require improvement. This analysis is fundamental to the MoV equation: Value = Function/Cost.

A. Value index: This is the numerical result or metric (Worth/Cost) derived from the analysis; it is not the assessment technique itself.

B. Cost/benefit analysis: This is a broader financial appraisal method. MoV uses the more specific and structured technique of Function Analysis to deconstruct value.

C. Cost/worth analysis: While MoV defines value as the relationship between worth and cost, 'Cost/function analysis' describes the specific, systematic technique used to perform this assessment.

1. AXELOS. (2010). Management of Value (MoV). The Stationery Office (TSO).

Section 5.3, Page 43: Introduces Function Analysis as a key MoV technique "for analysing a project, product, service or process into its constituent parts to understand the functions that each part contributes".

Section 5.3.1, Page 44: Explains the process of allocating costs to functions, stating, "This enables the study team to identify functions that have a low value index (i.e. a high cost relative to their importance)." This directly describes the process of cost/function analysis for assessing value.

Appendix C, Glossary, Page 138: Defines Function Analysis as "A technique to identify and quantify the functions of a project, product, service or organization." This confirms it is the technique used for assessment.

Appendix C, Glossary, Page 138: Defines Value Index as "A figure that represents the relationship between the cost of providing a function and the worth of that function..." This confirms it is the output metric, not the method.