Solution-Develop a budget for the next two years for

Develop a budget for the next two years for consumer loan

Reference no: EM131911213

Question - Assume that GE Capital, a division of General Electric, has been displeased with the costs of servicing its consumer loans. Assume that it has decided to implement a Kaizen based cost improvement program. For 2012, GE capital incurred the following costs:

Loan processing - $14,500,000

Customer relations - 3,500,000

Printing, mailing, postage - 800,000

For the next two years GE Capital expects an increase in consumer loans of 4% annually with related increases in costs.

a. If the company has a continuous improvement goal of 2% each year, develop a budget for the next two years for the consumer loan department.

b. Identify some possible ways that GE Capital can achieve the Kaizen costing goal.

c. Discuss the potential benefits and limitations of GE's Kaizen costing model.

Reference no: EM131911213

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Develop a budget for the next two years for consumer loan

Reference no: EM131911213

Reference no: EM131911213

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