Kaizen Budgeting

question 118

Multiple Choice

Kaizen budgeting:

• A) Sets targeted cost reductions over time
• B) Sets targeted quality reductions over time
• C) Is basically the same as activity-based budgeting
• D) Is incompatible with zero-based budgeting

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Definitions:

Direct Expenses

Expenses that can be traced directly to a specific department.

Specific Department

A designated segment within an organization focused on a particular area of activity or operations.

Profit Center

A business unit or department which is treated as a separate entity for the purpose of calculating its profitability.

Cost Center

A segment within an organization that is responsible for incurring costs, without directly contributing to the company’s income.