Which Approaches to Costing Should Be Associated with Each of the Following

question 22

Multiple Choice

Which approaches to costing should be associated with each of the following life-cycle stages?

• A) Kaizen Target Standard
• B) Target Standard Kaizen
• C) Target Kaizen Standard
• D) Kaizen Standard Target

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Definitions:

Internal Rate

Often referring to the internal rate of return (IRR), which is the rate of growth a project is expected to generate, calculated as the rate of discount that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Net Present Value

A financial indicator that determines the variance between the current value of incoming and outgoing cash flows during a specific timeframe.

Initial Investment

The sum of funds utilized to initiate a project, investment, or business endeavor.

Cash Break-even

The point at which a business generates just enough revenue to cover its operating cash expenditures.