Under Kaizen Costing, Accountants Forecast

question 86

Multiple Choice

Under Kaizen costing, accountants forecast:

• A) Declining prices and establish cost reduction goals to maintain a desired profit margin
• B) Cost reduction goals and desired profit margins, then adjust prices accordingly
• C) Declining profit margins and establish revenue and cost goals to meet them
• D) Increasing profit margins and establish revenue and cost goals to meet them

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Definitions:

Tragedy Commons

A situation where individual users, acting independently according to their own self-interest, deplete or spoil shared resources, despite understanding that degrading these resources is contrary to the group's long-term best interests.

Sustainable Consumption

The use of services and related products which respond to basic needs and bring a better quality of life while minimizing the use of natural resources, toxic materials, and emissions of waste and pollutants over the life cycle, so as not to jeopardize the needs of future generations.

Tragedy Commons

The Tragedy of the Commons is an economic theory suggesting that individuals acting in their own self-interest can deplete shared resources, leading to negative outcomes for the whole group.

Fish Population

Refers to the number and varieties of fish within a particular body of water or ecosystem.