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*15) TRUE or FALSE: Kaizen budgeting does NOT make sense for cost centers.*
Objective 6.6

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User Avgbody
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1 Answer

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Final answer:

Kaizen budgeting does not make sense for cost centers.

Step-by-step explanation:

Kaizen budgeting is a budgeting approach that focuses on continuously improving processes and reducing costs by making incremental changes.

In the context of cost centers, which are departments or divisions that incur costs but do not generate revenues, Kaizen budgeting may not make sense. This is because cost centers are not directly involved in revenue generation, so their focus is more on cost control rather than process improvement.

Therefore, the statement is TRUE, Kaizen budgeting does not make sense for cost centers.

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User Rumel
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