Kaizen Costing Helps to

question 102

Multiple Choice

Kaizen costing helps to

• A)reduce product costs of products in the design and development stage.
• B)keep the target cost as the primary focus after a product enters production.
• C)keep profit margin relatively stable as product price declines over the product life cycle.
• D)reduce the cost of engineering change orders during each stage of the product life cycle.

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Definitions:

Fixed Inspection Cost

A cost that remains constant in total for the inspection process regardless of the level of production.

Machine-Hours

An assessment of the level of productivity or operational activity, based on the time span machinery is active.

Sales Commissions

Payments made to sales employees as a percentage of the sales they generate.

Sales Volume

The total number of units of a product sold within a specific period.