Which of the Following Is Not a Characteristic of Kaizen

question 31

Multiple Choice

Which of the following is not a characteristic of Kaizen budgeting?

• A) These budgets reflect continuous-improvement standards.
• B) These budgets adjust required resource demands based on targeted efficiency and productivity gains.
• C) This approach to budgeting can be used in conjunction with both traditional and activity-based budgeting.
• D) This approach cannot be used externally (e.g., to budget supplier costs).
• E) Cost decreases in the budget are the result of performing the activities more efficiently and with higher quality.

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Definitions:

Ratio of Allowance

A financial metric used to assess the adequacy of an allowance for doubtful accounts or loan losses, often compared to total receivables or loans.

Sales Revenue Approach

A method to recognize revenue based on the sales of goods or services, highlighting the importance of sales activities in generating income for the business.

Unadjusted Year End

The financial figures reported at the end of a fiscal year before any adjustments are made for accruals, deferrals, or other accounting entries.

Trial Balance

An accounting report that lists the balances of all ledgers accounts in order to verify that total debits equal total credits.