In Kaizen budgeting, the costs are based on all the improvements which is __________?

Correct answer: A. to be implemented

  • A. to be implemented
  • B. based on current practice
  • C. based on past prices
  • D. based on sold quantity

Explanation

Kaizen budgeting builds expected costs after considering continuous improvements that are planned for implementation. It is therefore forward-looking rather than based only on current practice or past prices.

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About Cost Accounting

Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.

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