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

---

Definitions:

Investing Activities

Transactions involving the acquisition or disposal of non-current assets, such as property, plant, and equipment, included in a company’s cash flow statement.

Statement of Cash Flows

A financial document that provides detailed information about a company's cash inflows and outflows over a specific period.

Direct Method

A approach used in cash flow statement preparation that lists all major operating cash receipts and payments for the period, directly showing sources and uses of cash.

Investing Activities

Transactions involving the acquisition or disposal of long-term assets and investments, as part of a company's cash flow statement.