Kaizen Costing (KC or continuous cost management) replaces the Target-Costing (TC)
method and is the expression of an upstream return, towards the causes of performance,
which is possible in a transversal vision and by performing an analysis of the processes according
to the conception of the activity-based costing method (ABC-Activity-Based
Costing).
The kaizen costing activity involves that the planning team, after establishing and implementing
the product and process design, must focus on the operational character of the
process and on its development in the most efficient manner. This activity determines the
managers or the operators of the system existing within the organization to focus their attention
on cost reduction.