Final answer:
Kaizen budgeting is a concept that focuses on continuous improvement and cost reduction in an organization by setting incremental targets for budgeted expenses and encouraging employees to find ways to reduce costs and increase efficiency.
Step-by-step explanation:
Kaizen budgeting is a concept that focuses on continuous improvement and cost reduction in an organization. It involves setting incremental targets for budgeted expenses and encouraging employees to find ways to reduce costs and increase efficiency. This type of budgeting promotes a culture of continuous improvement and encourages employees to contribute ideas for cost-saving measures.
For example, if a department has a monthly budget for office supplies, the kaizen budgeting approach would encourage employees to find ways to reduce waste and streamline the purchasing process to reduce costs.