Your boss indicates that the store's stock/sales ratio is 5:1 . This means that _____ should be invested in inventory for every 1 of forecasted sales.
a. .20 (at retail price)
b. 5 (at cost price)
c. 5 (at retail price)
d. .20 (at cost price)
e. 50 (at cost price)
Question 2A(n) _____ depicts the amount of stock to have at the beginning of each month to support the forecasted sales for that month.
a. current asset
b. BOM inventory
c. stock-to-sales ratio
d. sales-to-stock ratio
e. EOM inventory
Question 3Once planned sales have been determined, the next step when developing a merchandise budget is to determine:
a. planned monthly BOM/EOM inventories.
b. the buyer's planned monthly gross margin.
c. planned monthly retail reductions.
d. total planned sales for the season.
e. planned purchases at retail and cost.
Question 4Suppose last year's sales were 100,000; inflation is 3 percent and you expect your market share to increase by 6 percent. What are your projected sales for this year?
a. 103,000
b. 106,000
c. 109,000
d. 109,180
e. 118,000
Question 5Total planned sales for the spring-summer season for the Mort's Discount Store are 25,000,000 . The planned monthly sales for March is 25 percent of total planned sales. March's planned sales are:
a. 2,500,000.
b. 6,250,000.
c. 12,500,000.
d. 15,625,000.
e. 18,750,000.
Question 6Which of the following figures is NOT found on a six-month merchandise budget?
a. Planned sales percentage
b. Planned retail purchases
c. Inventory depreciation
d. Planned gross margin dollars
e. Planned EOM stock
Question 7All of the following are requirements for a merchandise budget EXCEPT:
a. the budget should be prepared in advance of the selling season.
b. the language in the budget must be easy to understand.
c. the budget must plan for a relatively short period of time.
d. the budget should always seek to increase the planned gross margin over the actual gross margin from the previous season.
e. the budget should be flexible.
Question 8_____ is (are) the difference between net sales and cost of goods sold.
a. Gross margin
b. Gross sales
c. Operating profit
d. Net profit
e. Operating margin
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