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:

Control Orientation

An approach or mindset focused on managing or directing the behavior and activities of individuals or groups, often to ensure conformity and achieve specific outcomes.

External Forces

Influences from outside an organization that can impact its operations, such as economic conditions, legal regulations, and social trends.

Rating Questionnaire

A survey method used to evaluate preferences, performance, or perceptions through a scored system.

Accurate

Describes information or measurements that are correct in all details; free from errors or distortions.