Final answer:
The statement that Kaizen budgeting incorporates continuous improvement into budgeted amounts is TRUE. Kaizen budgeting aligns with the budget constraint framework by evaluating the full range of effects due to changes in income or prices, actively promoting continuous organizational improvement.
Step-by-step explanation:
The statement Kaizen budgeting incorporates continuous improvement into budgeted amounts is TRUE. Kaizen is a Japanese term meaning 'change for better' or 'continuous improvement.' It's a philosophy that focuses on constantly improving operations and involves all employees, from the CEO to the assembly line workers. In the context of budgeting, Kaizen budgeting is an approach where each new budget is not just a minor update to the previous one, but instead incorporates updated methods and efficiencies that can reduce costs and improve productivity. The budget constraint framework, then, highlights the importance of considering the broad spectrum of consequences that can result from changes in income or prices. It serves as a foundation for Kaizen budgeting by ensuring that all potential effects are evaluated, which helps enable continuous improvement.