Question 1

A common error made by retail buyers is having too much or too little basic stock on hand.

Accepted Answer

A) True 
 B)False

Question 2

A retailer selling a seasonal item would want to be 75 percent sold out at the planned out-of-stock date.

Accepted Answer

A) True 
 B)False

Question 3

Employee theft averages about $300 per apprehension.

Accepted Answer

A) True 
 B)False

Question 4

_____ is NOT a common factor considered when selecting a merchandise source.

Accepted Answer

A)  Trade terms 
B)  Fabric colors used 
C)  Consumers' perception of the manufacturer's reputation 
D)  Projected markup on the merchandise 
E)  After-sale service from the vendor 
A)  Trade terms 
B)  Fabric colors used 
C)  Consumers' perception of the manufacturer's reputation 
D)  Projected markup on the merchandise 
E)  After-sale service from the vendor

Question 5

When a retailer makes a single purchase of 25 or more cases of wine,the vendor offers an extra 20 percent discount.This is an example of a:

Accepted Answer

A)  noncumulative-quantity discount. 
B)  promotional allowance. 
C)  cash discount. 
D)  functional discount. 
E)  cumulative-quantity discount. 
A)  noncumulative-quantity discount. 
B)  promotional allowance. 
C)  cash discount. 
D)  functional discount. 
E)  cumulative-quantity discount.

Question 6

The confidential vendor analysis lists different companies than the profitability analysis statement for the purposes of protecting supplier identity.

Accepted Answer

A) True 
 B)False

Question 7

The _____ is a group of products that are closely related because they are intended for the same end use,are sold to the same customer group,or fall within a given price range.

Accepted Answer

A)  merchandise line 
B)  merchandise product mix 
C)  brand management 
D)  product assortment 
E)  unit management 
A)  merchandise line 
B)  merchandise product mix 
C)  brand management 
D)  product assortment 
E)  unit management

Question 8

Trade discounts are sometimes referred to as functional discounts.

Accepted Answer

A) True 
 B)False

Question 9

FOB factory implies that the retailer takes title for merchandise at the manufacturer's factory.

Accepted Answer

A) True 
 B)False

Question 10

A _____ discount is one that a vendor provides a retailer for running a special promotion for a manufacturer.

Accepted Answer

A)  promotional 
B)  advertising rebate 
C)  psychological 
D)  special 
E)  cash 
A)  promotional 
B)  advertising rebate 
C)  psychological 
D)  special 
E)  cash

Question 11

The three dimensions of the optimal merchandise mix include: variety,breadth,and depth.

Accepted Answer

A) True 
 B)False

Question 12

The following planned figures have been developed by a buyer for next month: sales = $100,000; reductions = $7,000; EOM stock = $250,000; BOM stock = $300,000; commitments for delivery during next month = $15,000.What are planned purchases and OTB for the buyer?

Accepted Answer

A)  $57,000; $42,000 
B)  $157,000; $142,000 
C)  $57,000; $72,000 
D)  $39,000; $54,000 
E)  $175,000; $412,000 
A)  $57,000; $42,000 
B)  $157,000; $142,000 
C)  $57,000; $72,000 
D)  $39,000; $54,000 
E)  $175,000; $412,000

Question 13

One of a retailer's greatest assets when dealing with a vendor is the retailer's past experiences with that vendor.

Accepted Answer

A) True 
 B)False

Question 14

A $1,000 increase in planned reductions for the month would:

Accepted Answer

A)  raise EOM inventory by $2,000. 
B)  lower this month's OTB by $1,000. 
C)  increase BOM inventory by $1,000. 
D)  increase this month's OTB by $1,000. 
E)  lower planned purchases by $1,000 for this month. 
A)  raise EOM inventory by $2,000. 
B)  lower this month's OTB by $1,000. 
C)  increase BOM inventory by $1,000. 
D)  increase this month's OTB by $1,000. 
E)  lower planned purchases by $1,000 for this month.

Question 15

A buyer is given cash discount terms of 3/10,net 30,MOM.The invoice for the goods is dated May 14.When will the discount period expire?

Accepted Answer

A)  May 25 
B)  May 22 
C)  June 10 
D)  June 15 
E)  June 30 
A)  May 25 
B)  May 22 
C)  June 10 
D)  June 15 
E)  June 30

Question 16

A functional discount is a reduction in price given to retailers to compensate them for their promotional expenses.

Accepted Answer

A) True 
 B)False

Question 17

If planned reductions for June increase by $1,000,June OTB will increase by $1,000.

Accepted Answer

A) True 
 B)False

Question 18

A vendor offers a retailer "FOB shipping point" terms.This means that the retailer must pay:

Accepted Answer

A)  no transportation costs. 
B)  transportation costs from the shipping point. 
C)  all transportation costs from the vendor's factory. 
D)  half of the transportation costs. 
E)  only for those transportation costs incurred after the goods leave the retailer's factory. 
A)  no transportation costs. 
B)  transportation costs from the shipping point. 
C)  all transportation costs from the vendor's factory. 
D)  half of the transportation costs. 
E)  only for those transportation costs incurred after the goods leave the retailer's factory.

Question 19

When the manufacturer offers a retailer a percentage discount in exchange for performing certain wholesaling and retailing services,the manufacturer is offering a _____ discount.

Accepted Answer

A)  cash rebate 
B)  Trade 
C)  performance incentive 
D)  Quantity 
E)  Cash 
A)  cash rebate 
B)  Trade 
C)  performance incentive 
D)  Quantity 
E)  Cash

Question 20

The _____ provides a three-year financial summary as well as the names,titles,and negotiating points of all the vendor's sales staff.

Accepted Answer

A)  black book 
B)  vendor classification book 
C)  vendor profitability book 
D)  buyer's guide 
E)  confidential vendor analysis 
A)  black book 
B)  vendor classification book 
C)  vendor profitability book 
D)  buyer's guide 
E)  confidential vendor analysis

A common error made by retail buyers is having too much or too little basic stock on hand.

A retailer selling a seasonal item would want to be 75 percent sold out at the planned out-of-stock date.

Employee theft averages about $300 per apprehension.

_____ is NOT a common factor considered when selecting a merchandise source.

When a retailer makes a single purchase of 25 or more cases of wine,the vendor offers an extra 20 percent discount.This is an example of a:

The confidential vendor analysis lists different companies than the profitability analysis statement for the purposes of protecting supplier identity.

The _____ is a group of products that are closely related because they are intended for the same end use,are sold to the same customer group,or fall within a given price range.

Trade discounts are sometimes referred to as functional discounts.

FOB factory implies that the retailer takes title for merchandise at the manufacturer's factory.

A _____ discount is one that a vendor provides a retailer for running a special promotion for a manufacturer.

The three dimensions of the optimal merchandise mix include: variety,breadth,and depth.

The following planned figures have been developed by a buyer for next month: sales = $100,000; reductions = $7,000; EOM stock = $250,000; BOM stock = $300,000; commitments for delivery during next month = $15,000.What are planned purchases and OTB for the buyer?

One of a retailer's greatest assets when dealing with a vendor is the retailer's past experiences with that vendor.

A $1,000 increase in planned reductions for the month would:

A buyer is given cash discount terms of 3/10,net 30,MOM.The invoice for the goods is dated May 14.When will the discount period expire?

A functional discount is a reduction in price given to retailers to compensate them for their promotional expenses.

If planned reductions for June increase by $1,000,June OTB will increase by $1,000.

A vendor offers a retailer "FOB shipping point" terms.This means that the retailer must pay:

When the manufacturer offers a retailer a percentage discount in exchange for performing certain wholesaling and retailing services,the manufacturer is offering a _____ discount.

The _____ provides a three-year financial summary as well as the names,titles,and negotiating points of all the vendor's sales staff.

Perspectives on Retailing

Retail Strategic Planning and Operations Management

Retail Customers

Evaluating the Competition in Retailing

Managing the Supply Chain

Legal and Ethical Behavior

Market Selection and Retail Location Analysis

Managing a Retailer’s Finances

Merchandise Pricing

Advertising and Promotion

Customer Service and Retail Selling

Store Layout and Design

Managing People

Filters

Exam 9: Merchandise Buying and Handling

A common error made by retail buyers is having too much or too little basic stock on hand.

A retailer selling a seasonal item would want to be 75 percent sold out at the planned out-of-stock date.

Employee theft averages about $300 per apprehension.

_____ is NOT a common factor considered when selecting a merchandise source.

When a retailer makes a single purchase of 25 or more cases of wine,the vendor offers an extra 20 percent discount.This is an example of a:

The confidential vendor analysis lists different companies than the profitability analysis statement for the purposes of protecting supplier identity.

The _____ is a group of products that are closely related because they are intended for the same end use,are sold to the same customer group,or fall within a given price range.

Trade discounts are sometimes referred to as functional discounts.

FOB factory implies that the retailer takes title for merchandise at the manufacturer's factory.

A _____ discount is one that a vendor provides a retailer for running a special promotion for a manufacturer.

The three dimensions of the optimal merchandise mix include: variety,breadth,and depth.

The following planned figures have been developed by a buyer for next month: sales = $100,000; reductions = $7,000; EOM stock = $250,000; BOM stock = $300,000; commitments for delivery during next month = $15,000.What are planned purchases and OTB for the buyer?

One of a retailer's greatest assets when dealing with a vendor is the retailer's past experiences with that vendor.

A $1,000 increase in planned reductions for the month would:

A buyer is given cash discount terms of 3/10,net 30,MOM.The invoice for the goods is dated May 14.When will the discount period expire?

A functional discount is a reduction in price given to retailers to compensate them for their promotional expenses.

If planned reductions for June increase by $1,000,June OTB will increase by $1,000.

A vendor offers a retailer "FOB shipping point" terms.This means that the retailer must pay:

When the manufacturer offers a retailer a percentage discount in exchange for performing certain wholesaling and retailing services,the manufacturer is offering a _____ discount.

The _____ provides a three-year financial summary as well as the names,titles,and negotiating points of all the vendor's sales staff.

Perspectives on Retailing

Retail Strategic Planning and Operations Management

Retail Customers

Evaluating the Competition in Retailing

Managing the Supply Chain

Legal and Ethical Behavior

Market Selection and Retail Location Analysis

Managing a Retailer’s Finances

Merchandise Pricing

Advertising and Promotion

Customer Service and Retail Selling

Store Layout and Design

Managing People

Filters