Question 1

A seasonal discount is given by suppliers to retailers that purchase and take delivery of merchandise during the off-season.

Accepted Answer

A) True 
 B)False

Question 2

Explain the four different methods for planning dollars invested in merchandise.

Accepted Answer

The four different methods for planning

Question 3

It is important for anyone considering a career in retailing to understand merchandise management,since all retailing jobs have some contact with the firm's merchandising activities.

Accepted Answer

A) True 
 B)False

Question 4

_____ is the dollar amount that a buyer can currently spend on merchandise without exceeding a planned dollar stock level.

Accepted Answer

A)  "Planning monies" 
B)  Open-to-buy 
C)  Inventory shortage funds 
D)  Unlimited funds 
E)  EOM shortfall funds 
A)  "Planning monies" 
B)  Open-to-buy 
C)  Inventory shortage funds 
D)  Unlimited funds 
E)  EOM shortfall funds

Question 5

Inventory is the largest investment a retailer makes.

Accepted Answer

A) True 
 B)False

Question 6

A sell through is the percentage of the stock of a particular item from a particular vendor that sold during the merchandise season.

Accepted Answer

A) True 
 B)False

Question 7

A cash discount is quoted to a retailer as 3/10,net 60.This means that:

Accepted Answer

A)  a discount of 3 percent can be earned if paid off in 10 installments over the next 60 days. 
B)  the retailer will get a 10 percent discount if the total is paid in 60 days. 
C)  a 3 percent discount will be granted to the retailer if the bill is paid in 10 days. 
D)  the bill is due in 60 days, but a discount of 3 percent to 10 percent can be earned for paying it off sooner. 
E)  the total bill must be paid within 10 days. 
A)  a discount of 3 percent can be earned if paid off in 10 installments over the next 60 days. 
B)  the retailer will get a 10 percent discount if the total is paid in 60 days. 
C)  a 3 percent discount will be granted to the retailer if the bill is paid in 10 days. 
D)  the bill is due in 60 days, but a discount of 3 percent to 10 percent can be earned for paying it off sooner. 
E)  the total bill must be paid within 10 days.

Question 8

The retailer and vendor should seek to make negotiations a "win-win" situation.

Accepted Answer

A) True 
 B)False

Question 9

Trade discounts are typically given by manufacturers to retailers and wholesalers to compensate them for performing certain services for the manufacturer.

Accepted Answer

A) True 
 B)False

Question 10

_____ allows the retailer to pay the invoice in advance of the end of the cash period and earn an extra discount.

Accepted Answer

A)  Advance discount 
B)  Functional discount 
C)  Momentum discount 
D)  Promotional allowance 
E)  Anticipation 
A)  Advance discount 
B)  Functional discount 
C)  Momentum discount 
D)  Promotional allowance 
E)  Anticipation

Question 11

How can the retailer minimize theft at the incoming merchandise point?

Accepted Answer

The retailer must have some means of han

Question 12

The optimal merchandise mix will be the same for every store.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is NOT a common buying error that may cause adjustments to be made to the retailer's OTB?

Accepted Answer

A)  Buying the wrong type of merchandise 
B)  Buying merchandise at the wrong price levels 
C)  Having too much or too little basic stock on hand 
D)  Buying from very few vendors 
E)  Failing to identify the season's hot items early enough in the season 
A)  Buying the wrong type of merchandise 
B)  Buying merchandise at the wrong price levels 
C)  Having too much or too little basic stock on hand 
D)  Buying from very few vendors 
E)  Failing to identify the season's hot items early enough in the season

Question 14

Theft in transit is a rarity today; thus,most retailers seldom worry about it.

Accepted Answer

A) True 
 B)False

Question 15

What are some common buying errors a retailer should avoid when buying merchandise?

Accepted Answer

Some of the most common buying errors in

Question 16

While many different vendor selection criteria are discussed in the text,a product's country of origin continues to lose importance as customers now think in terms of a global,rather than national,scale.

Accepted Answer

A) True 
 B)False

Question 17

When a retailer has a yearly turnover rate that is _____ or more times a year,the percentage variation method is most commonly used for determining planned stock levels.

Accepted Answer

A)  8 
B)  12 
C)  4 
D)  10 
E)  6 
A)  8 
B)  12 
C)  4 
D)  10 
E)  6

Question 18

The following planned figures have been developed by a buyer for next month: sales = $25,000; reductions = $1,500; BOM stock = $80,000; EOM stock = $88,000; commitments already made for delivery during next month = $5,600.What are planned purchases and OTB for the buyer?

Accepted Answer

A)  $18,500; $12,900 
B)  $34,500; $40,100 
C)  $18,500; $24,100 
D)  $34,500; $28,900 
E)  $26,500; $18,500 
A)  $18,500; $12,900 
B)  $34,500; $40,100 
C)  $18,500; $24,100 
D)  $34,500; $28,900 
E)  $26,500; $18,500

Question 19

When comparing customer theft and employee theft,which of the following statements is false?

Accepted Answer

A)  Over a dozen shoppers are caught for every time an employee is caught. 
B)  As many as 30 percent of American workers admit to stealing from their employers, even if it is only a small item. 
C)  Employee theft amounts to over $800 per apprehension. 
D)  The average amount of merchandise recovered from a shoplifter is over $500. 
E)  Employee theft is most prevalent in food stores, department stores, and discount stores. 
A)  Over a dozen shoppers are caught for every time an employee is caught. 
B)  As many as 30 percent of American workers admit to stealing from their employers, even if it is only a small item. 
C)  Employee theft amounts to over $800 per apprehension. 
D)  The average amount of merchandise recovered from a shoplifter is over $500. 
E)  Employee theft is most prevalent in food stores, department stores, and discount stores.

Question 20

The difference between a retailer's planned purchases and the retailer's open-to-buy is:

Accepted Answer

A)  merchandise that the retailer has already ordered, but has not received. 
B)  the discounts offered by vendors on earlier purchases. 
C)  reductions to be taken later in the selling period. 
D)  the difference between the BOM and EOM stock levels. 
E)  A retailers planned purchases is always equal to the retailer's open-to-buy. 
A)  merchandise that the retailer has already ordered, but has not received. 
B)  the discounts offered by vendors on earlier purchases. 
C)  reductions to be taken later in the selling period. 
D)  the difference between the BOM and EOM stock levels. 
E)  A retailers planned purchases is always equal to the retailer's open-to-buy.

A seasonal discount is given by suppliers to retailers that purchase and take delivery of merchandise during the off-season.

Explain the four different methods for planning dollars invested in merchandise.

It is important for anyone considering a career in retailing to understand merchandise management,since all retailing jobs have some contact with the firm's merchandising activities.

_____ is the dollar amount that a buyer can currently spend on merchandise without exceeding a planned dollar stock level.

Inventory is the largest investment a retailer makes.

A sell through is the percentage of the stock of a particular item from a particular vendor that sold during the merchandise season.

A cash discount is quoted to a retailer as 3/10,net 60.This means that:

The retailer and vendor should seek to make negotiations a "win-win" situation.

Trade discounts are typically given by manufacturers to retailers and wholesalers to compensate them for performing certain services for the manufacturer.

_____ allows the retailer to pay the invoice in advance of the end of the cash period and earn an extra discount.

How can the retailer minimize theft at the incoming merchandise point?

The optimal merchandise mix will be the same for every store.

Which of the following is NOT a common buying error that may cause adjustments to be made to the retailer's OTB?

Theft in transit is a rarity today; thus,most retailers seldom worry about it.

What are some common buying errors a retailer should avoid when buying merchandise?

While many different vendor selection criteria are discussed in the text,a product's country of origin continues to lose importance as customers now think in terms of a global,rather than national,scale.

When a retailer has a yearly turnover rate that is _____ or more times a year,the percentage variation method is most commonly used for determining planned stock levels.

The following planned figures have been developed by a buyer for next month: sales = $25,000; reductions = $1,500; BOM stock = $80,000; EOM stock = $88,000; commitments already made for delivery during next month = $5,600.What are planned purchases and OTB for the buyer?

When comparing customer theft and employee theft,which of the following statements is false?

The difference between a retailer's planned purchases and the retailer's open-to-buy is:

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 seasonal discount is given by suppliers to retailers that purchase and take delivery of merchandise during the off-season.

Explain the four different methods for planning dollars invested in merchandise.

It is important for anyone considering a career in retailing to understand merchandise management,since all retailing jobs have some contact with the firm's merchandising activities.

_____ is the dollar amount that a buyer can currently spend on merchandise without exceeding a planned dollar stock level.

Inventory is the largest investment a retailer makes.

A sell through is the percentage of the stock of a particular item from a particular vendor that sold during the merchandise season.

A cash discount is quoted to a retailer as 3/10,net 60.This means that:

The retailer and vendor should seek to make negotiations a "win-win" situation.

Trade discounts are typically given by manufacturers to retailers and wholesalers to compensate them for performing certain services for the manufacturer.

_____ allows the retailer to pay the invoice in advance of the end of the cash period and earn an extra discount.

How can the retailer minimize theft at the incoming merchandise point?

The optimal merchandise mix will be the same for every store.

Which of the following is NOT a common buying error that may cause adjustments to be made to the retailer's OTB?

Theft in transit is a rarity today; thus,most retailers seldom worry about it.

What are some common buying errors a retailer should avoid when buying merchandise?

While many different vendor selection criteria are discussed in the text,a product's country of origin continues to lose importance as customers now think in terms of a global,rather than national,scale.

When a retailer has a yearly turnover rate that is _____ or more times a year,the percentage variation method is most commonly used for determining planned stock levels.

The following planned figures have been developed by a buyer for next month: sales = $25,000; reductions = $1,500; BOM stock = $80,000; EOM stock = $88,000; commitments already made for delivery during next month = $5,600.What are planned purchases and OTB for the buyer?

When comparing customer theft and employee theft,which of the following statements is false?

The difference between a retailer's planned purchases and the retailer's open-to-buy is:

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