Under Kaizen Costing, Accountants Forecast

question 86

Multiple Choice

Under Kaizen costing, accountants forecast:

• A) Declining prices and establish cost reduction goals to maintain a desired profit margin
• B) Cost reduction goals and desired profit margins, then adjust prices accordingly
• C) Declining profit margins and establish revenue and cost goals to meet them
• D) Increasing profit margins and establish revenue and cost goals to meet them

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Definitions:

Credibility

The quality of being trusted and believed in, often associated with accuracy and reliability.

Skepticism

An attitude of questioning or doubting the validity or authenticity of something supposed to be factual.

Illogical

Lacking sense or clear, sound reasoning; not following the principles of logic.

Inaccurate

Refers to something that is not correct or precise.