Kaizen Costing Helps to

question 102

Multiple Choice

Kaizen costing helps to

• A)reduce product costs of products in the design and development stage.
• B)keep the target cost as the primary focus after a product enters production.
• C)keep profit margin relatively stable as product price declines over the product life cycle.
• D)reduce the cost of engineering change orders during each stage of the product life cycle.

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Definitions:

Current Balance

The sum of the trade balance, net income from abroad, and net current transfers.

Behavioral Economists

Scholars who study the effects of psychological, cognitive, emotional, cultural, and social factors on economic decisions of individuals and institutions.

Marginal Disutility

The additional dissatisfaction or negative utility gained by consuming or producing one additional unit of a good or service.

Status Quo

The existing state of affairs; in prospect theory, the current situation from which gains and losses are calculated.