Figure 21-8
At the beginning of the year, Grant Company initiated a quality improvement program. The program was successful in reducing scrap and rework costs. To help assess the impact of the quality improvement program, the following data were collected for the current and preceding years:
-Which of the following statements is true concerning continuous improvement costing?
A) It is also referred to as Kanban costing.
B) It is a prerequisite for target pricing.
C) It calls for the establishment of cost reduction targets for products or services.
D) All of the above statements are true.

Question

Figure 21-8
At the beginning of the year, Grant Company initiated a quality improvement program. The program was successful in reducing scrap and rework costs. To help assess the impact of the quality improvement program, the following data were collected for the current and preceding years: 
-Which of the following statements is true concerning continuous improvement costing?
A) It is also referred to as Kanban costing. 
B) It is a prerequisite for target pricing. 
C) It calls for the establishment of cost reduction targets for products or services. 
D) All of the above statements are true.

Quizplus · Accepted Answer

Continuous improvement costing involves setting cost reduction targets to improve efficiency and reduce costs over time.

Figure 21-8 at the Beginning of the Year, Grant Company Initiated a Initiated