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    Question

    Which of the following is not a principle of Kaizen Costing?

    A Kaizen system seeks gradual improvements Correct Answer Incorrect Answer
    B It encourages collective decision making Correct Answer Incorrect Answer
    C Kaizen involves setting standards and then continually improving these Correct Answer Incorrect Answer
    D Involves all unskilled employees Correct Answer Incorrect Answer
    E Its focus is on eliminating waste Correct Answer Incorrect Answer

    Solution

    Kaizen, means continual improvement. Kaizen Costing Principles o   The system seeks gradual improvements in the existing situation, at an acceptable cost. o   It encourages collective decision making and application of knowledge. o   There are nolimits tothe level ofimprovements that can be implemented o   Kaizen involves setting standards and then continually improving these standards to achieve long-term sustainable improvements. o   The focus is on eliminating waste, improving systems, and improving productivity. o   Involves all employees (and not just unskilled employees) and all areas of the business

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