Kaizen Budgets

question 126

Multiple Choice

Kaizen budgets:

• A) Are the same as traditional budgets
• B) Include cost reduction and quality improvements in the budgeting process
• C) Are prepared month by month
• D) Do not include revenues

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Definitions:

Mixed Cost

A cost that contains both variable and fixed cost components, changing in total with levels of activity but not proportionately.

T-shirt

A garment for the upper body made of fabric, typically with short sleeves and a round neckline, worn as casual wear.

Variable Cost

Expenses that vary directly with the level of production or volume of operations in a business.

Period Cost

These are costs that are not directly tied to the production process and are expensed in the period in which they occur. Examples include selling, general, and administrative expenses.