Kaizen Costing Is

question 19

Multiple Choice

Kaizen costing is

• A)continuous improvement with the objective of cost reduction.
• B)characterized by constant improvements to existing processes and products.
• C)characterized by incremental improvement to existing processes and products.
• D)all of the above.

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Definitions:

Revenue Expenditures

Operating expenses that are fully expensed in the accounting period when incurred and primarily related to the maintenance and repair of assets.

Balance Sheet Expenditures

Expenses that are reflected in the balance sheet, usually through an adjustment of assets or liabilities.

Commercial Substance

A concept that an economic transaction has a significant impact on the future cash flows of a company, justifying its recognition.

Plant Assets

Long-term tangible assets, such as buildings, machinery, and equipment, used in the operation of a business and not intended for resale.