All the statements below are true regarding Kaizen costing EXCEPT that:
A)cost-variance analysis compares target Kaizen costs with actual cost reduction amounts.
B)cost reductions apply to all variable costs.
C)workers are assumed to have the best knowledge to improve processes and reduce costs.
D)cost reduction targets are set and applied on an annual basis.

Question

Quizplus · Accepted Answer

Kaizen costing does not necessarily require cost reduction targets to be set on an annual basis. Instead, they can be set and applied to specific projects or processes as needed. The other statements are true about Kaizen costing.

All the Statements Below Are True Regarding Kaizen Costing EXCEPT