Kanri Is the Term Used to Describe the Interactive Nature

question 54

True/False

Kanri is the term used to describe the interactive nature of the Hoshin planning process.

---

Definitions:

Variable Costing

An accounting method that includes only variable production costs in the cost of goods sold and treats fixed overhead expenses as period costs.

Operating Income

Earnings from a company’s core business operations, excluding deductions of interest and taxes.

Absorption Costing

An accounting method that includes all direct costs and overheads involved in manufacturing a product in the cost of that product.

Contribution Margin

The amount of revenue remaining after subtracting the variable costs associated with producing goods, contributing to covering fixed costs and profit.