Kaizen Costing Provides Fixed Standards Which Reflect Continuous Improvement Efforts

question 89

True/False

Kaizen costing provides fixed standards which reflect continuous improvement efforts.

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Definitions:

Net Profit Margin

A financial metric expressing the percentage of revenue that remains as profit after all operating and non-operating expenses have been deducted.

Gross Margin

The difference between revenue and cost of goods sold, which serves as a measure of a company’s manufacturing and distribution efficiency.

Return On Total Assets

A financial ratio that measures the profitability of a company relative to its total assets, indicating how efficiently a company uses its assets to generate profits.

Return On Equity

A metric that gauges the effectiveness of a firm in utilizing investments to drive earnings growth, determined by dividing net income by shareholders' equity.