Accounting Dictionary - Letter K
Kaizen is a Japanese term for continuous improvement. Kaizen budgeting is a budgeting technique when budgetary estimates are based on expectations for continuous improvement. In Kaizen budgeting cost reduction is built into the budget on an incremental basis: managers try to reduce production costs over time, and when budgeted cost reductions are not achieved, that operating area is analyzed. Kaizen costing is a costing approach based on targeted costs for a period.
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