Abstract
In the current conditions, continuous improvement is one of the main issues faced by the managers
of organizations. The Japanese use the term kaizen to designate continuous improvement.
Budgeting via the kaizen method explicitly integrates improvement throughout the period budgeted in
the budget data.
Budget explanation via the kaizen method refers, on the one hand, to budgeting for the purposes
of continuously improving the number of work hours per product unit, and, on the other hand, to the
way it is used in cost management, or, more specifically, to the way it is used for the purposes of reducing
costs.
Key words: kaizen, budgeting process, target cost, product life cycle, continuous cost reduction.