A company uses a 7-digit number to identify customers. For ...

[Starlight]

A company uses a 7-digit number to identify customers. For example, the customer 1532789 indicates the following information: digits 1-2, state, 15 = Georgia digit 3, type of organization, 3 = government agency digit 4, credit terms, 2 = 2/10, n/30 digits 5-7, unique customer identifier, 789 This type of coding scheme is:
 a. hierarchical
  b. block
  c. significant digit
  d. sequential

Question 2

Steve Corporation is using the kaizen approach to budgeting for 2015. The budgeted income statement for January 2015 is as follows:
 
  Sales (240,000 units) 360,000
   Less: Cost of goods sold 240,000
 
   Gross margin 120,000
   Operating expenses (includes 32,000 of fixed costs) 96,000
 
   Net income  24,000
 
  Under the kaizen approach, cost of goods sold and variable operating expenses are budgeted to decline by 1 per month.
 
  Required:
  Prepare a kaizen-based budgeted income statement for March of 2015.

[joneynes]

Answer to Question 1

C

Answer to Question 2

Answer: Sales 360,000
Less: Cost of goods sold (240,000  0.99  0.99) 235,224

Gross margin 124,776
Operating expenses (64,000  0.99  0.99) + 32,000 94,726

Net income  30,050