Kaizen Costing Is Similar to a Budget Except That Kaizen

question 64

Multiple Choice

Kaizen costing is similar to a budget except that kaizen costing

• A) Does not use dollar amounts
• B) Cannot be implemented in service organizations
• C) Requires the use of the high-low method to forecast revenues
• D) Provides for explicit cost reductions

---

Definitions:

Negative Income Tax

A fiscal mechanism where individuals earning below a certain threshold receive supplemental pay from the government instead of paying taxes.

Subsidy

A financial contribution provided by the government or another body to support an industry, business, or individual.

Earned Income Tax Credit

A refundable tax credit for low- to moderate-income working individuals and families, aimed at reducing poverty and encouraging work.

Working Poor

Individuals who are employed but still live below the poverty line due to low wages and inadequate employment benefits.