Final answer:
The answer to the question is FALSE; Kaizen budgeting emphasizes small, slow, continuous changes rather than major overhauls. It represents a philosophy of ongoing improvement that aligns with the broader budget constraint framework, which suggests considering the wide-ranging effects of economic changes.
Step-by-step explanation:
The statement that Kaizen budgeting encourages major improvements rather than small incremental changes is FALSE. Kaizen is a Japanese term meaning 'change for the better' or 'continuous improvement'. It is a business philosophy that focuses on continuous, incremental improvement in all aspects of the business, from manufacturing to management and even budgeting. In the context of budgeting, Kaizen budgeting involves making small, ongoing changes to the budget to reflect continuous improvements in cost reduction and process efficiency, rather than major, less frequent overhauls.
The budget constraint framework reminds business managers and individuals to think about the broad impact of changes in income or prices. It highlights how changing one variable can affect not just the target product or service, but can have a ripple effect on the entire budget or economic situation.