Continuous Improvement Is a Management Philosophy That Seeks Continual Improvement

question 14

True/False

Continuous improvement is a management philosophy that seeks continual improvement of machinery, materials, labor utilization, and production methods through applications of suggestions and ideas of company teams.

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Definitions:

Variable Expenses

Costs that vary in proportion to changes in the level of activity or volume of production.

Contribution Format

A type of income statement format that separates fixed and variable costs, helping in determining the contribution margin of sold goods or services toward fixed costs and profits.

Management Performance Appraisals

The systematic evaluation of the performance of managers and the effectiveness of their leadership in achieving business objectives.

Budgeting

The process of creating a plan to spend your money, outlining future financial goals and how resources will be allocated to achieve them.