Kaizen costing is similar to a budget except that Kaizen costing:
A) Does not use dollar amounts
B) Cannot be implemented in service organizations
C) Requires the use of the high-low method to forecast revenues
D) Provides for explicit cost reductions

Question

Quizplus · Accepted Answer

Kaizen costing provides for explicit cost reductions, which is not a characteristic of traditional budgeting. Kaizen costing also focuses on continuous improvement of the production process rather than just setting financial goals like traditional budgeting. Kaizen costing can be implemented in both manufacturing and service industries. The method used for forecasting revenues may vary depending on the organization's needs, but the high-low method is not a requirement for Kaizen costing.

Kaizen Costing Is Similar to a Budget Except That Kaizen