Sherry and John Enterprises Are Using the Kaizen Approach to Budgeting

question 134

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 budgeted cost of goods sold for March 2018?

• A)$637,065
• B)$656,500
• C)$650,000
• D)$643,500

---

Definitions:

Control

The power to influence or direct people's behavior or the course of events.

Overseas Operations

Business activities or functions that are conducted in foreign countries, away from the company's home country.