DJK Enterprises Are Using the Kaizen Approach to Budgeting for 2011

Multiple Choice

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