Kaizen costing is:
A) Another name for target costing
B) Focused only on cost reduction
C) Continuous improvement in cost, quality, and functionality
D) A method for budgeting

Question

Quizplus · Accepted Answer

Kaizen costing is a continuous improvement process that focuses on enhancing cost, quality, and functionality. It is not just about cost reduction but includes all aspects of the product or service. It is different from target costing, which is a process of setting a target cost for a product or service based on customer requirements and competitor prices. Kaizen costing is not a method for budgeting.

Kaizen Costing Is