Sherry and John Enterprises Are Using the Kaizen Approach to Budgeting

question 52

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 3% per month.
What is budgeted gross margin for March 2018?

• A)$413,996
• B)$426,800
• C)$466,796
• D)$476,642

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Definitions:

Repression

A defense mechanism in psychoanalytic theory in which unpleasant thoughts, memories, or feelings are pushed out of the conscious mind.

Repression

A defense mechanism in which unpleasant thoughts, feelings, or desires are excluded from conscious awareness.

Proactive Interference

The phenomenon where older memories hinder the recall of newly acquired information.

Automatic Processing

The unconscious encoding of incidental information and well-learned tasks, requiring little to no cognitive effort.