Kaizen budgeting:
A) Sets targeted cost reductions over time
B) Sets targeted quality reductions over time
C) Is basically the same as activity-based budgeting
D) Is incompatible with zero-based budgeting

Question

Quizplus · Accepted Answer

Kaizen budgeting sets targeted cost reductions over time through a continuous improvement approach, whereas activity-based budgeting focuses on the costs of specific activities. It is not the same as zero-based budgeting, where expenses are evaluated and justified on a regular basis regardless of past budgets. Quality reductions are not the objective of kaizen budgeting.

Kaizen Budgeting