Questions 1. What are the 3 problems that might arise from the application of ABC costing? 2. Describe and explain the evolution of a management control system, including how budgets became a major feature of that system. 3. What is an accounting tool and why is budgeting described as an accounting tool?

4. Define kaizen budgeting and its importance for cost management. How would you incorporate kaizen budgeting in your organization? Give example.