DJK Enterprises are using the Kaizen approach to budgeting for 2011 . The budgeted income statement for January 2011 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 cost of goods sold for March 2011?
A)$294,030
B)$294,000
C)$300,000
D)$297,000

Question

DJK Enterprises are using the Kaizen approach to budgeting for 2011 . The budgeted income statement for January 2011 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 cost of goods sold for March 2011?
A)$294,030 
B)$294,000 
C)$300,000 
D)$297,000

Quizplus · Accepted Answer

A)$300,000 × 0.99 × 0.99 = $294,030

DJK Enterprises Are Using the Kaizen Approach to Budgeting for 2011