Answer the Following Question(s)using the Information Below

question 77

Essay

Answer the following question(s)using the information below.Sherry and John Enterprises are using the Kaizen approach to budgeting for 2019.The budgeted income statement for January 2019 is as follows:
Under the Kaizen approach, cost of goods sold and variable operating expenses are budgeted to decline by 1% per month.
-Gimble Corporation is developing its budgets for 2019 and for the first time will use the Kaizen approach.The initial 2019 income statement, based on static data from 2018, is as follows:
Under the Kaizen approach, cost of goods sold and variable operating expenses are budgeted to decline by 9%.Required:
Prepare a Kaizen-based budgeted income statement for March of 2019.

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Definitions:

Planning

The process of setting goals, defining strategies, and outlining tasks and schedules to achieve the desired outcomes.

Setting Goals

The process of identifying tangible objectives to aim for, often as benchmarks for personal or professional success.

Accepted Principles

Generally accepted accounting principles (GAAP) that serve as the framework and rules for financial reporting and accounting.

Financial Accounting

The field that focuses on the preparation and reporting of financial statements for external use by investors, regulators, and other stakeholders.