What Feature Differentiates Kaizen Budgeting from Other Forms of Budgeting

question 48

Multiple Choice

What feature differentiates Kaizen budgeting from other forms of budgeting?

• A) Cost reduction and quality improvement goals are embedded in the budgets
• B) It is used only in Japan
• C) It is used for products with increasing prices
• D) It is normally found in companies also using zero-based budgeting

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the amount of the good that consumers are willing to purchase at that price, ceteris paribus.

Zero Price

Refers to a situation where a good or service is offered without requiring payment; often to promote sharing or distribution efficiency.

Marginal Utility

The supplementary satisfaction or advantage a consumer experiences by using one more unit of a good or service.

Diminishing

Refers to the principle where additional units of input result in progressively smaller increases in output, often applied in the context of diminishing marginal returns in production.