Sherry and John Enterprises Are Using the Kaizen Approach to Budgeting

question 97

Multiple Choice

Sherry and John Enterprises are using the kaizen approach to budgeting for 2018. The budgeted income statement for January 2018 is as follows:

Under the kaizen approach, cost of goods sold and variable operating expenses are budgeted to decline by 1% per month.
What is the budgeted operating income for March 2018?

• A) -$18,100
• B) $396,550
• C) -$59,403
• D) $683,100

Understand and apply cost formulas to predict costs at different levels of production.

Analyze the impact of changes in production levels on fixed and variable costs per unit.

Calculate total product and period costs for financial reporting purposes.

Understand the concept of relevant range and its implications for cost behavior.

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Definitions:

Marketing Communications

The various methods and channels used by a company to communicate with its target audience and market its products.

Receiver

The person who reads, hears, or sees and processes the information contained in the message or advertisement.

Action

In the context of goals or objectives, it refers to the process of taking concrete steps or measures towards achieving a specific result or outcome.

Marketing Communication

The process of using various channels and messages to communicate with a market, including advertising, sales promotion, and public relations.