Final answer:
The claim that Kaizen budgeting is not suitable for cost centers is false. Kaizen budgeting, emphasizing continuous improvement, can be effective for cost centers in managing and reducing costs. The correct answer is False.
Step-by-step explanation:
The statement that Kaizen budgeting does NOT make sense for cost centers is FALSE. Kaizen budgeting is an approach that involves continuous improvement and is based on the concept of making incremental changes to improve efficiency and reduce waste. This strategy can be relevant for cost centers, which are parts of an organization that do not directly generate revenue but incur costs, as they aim to control and reduce these costs over time.
Through the principles of Kaizen, employees in cost centers can identify areas for cost reduction and efficiency improvements even though they are not directly tied to revenue generation. Therefore, the correct answer is False.