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Retail Financials

Subject : business-skills
Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Price change that results in reestablishing the original retail price to merchandise after it was temporarily marked down






2. Based on a calculation commonly represented as a percentage - comparing the amount of inventory a retailer receives from a manufacturer or supplier against what is actually sold to the consumer






3. Net Profit/ Net Sales






4. What the retailer owns in monetary value






5. Price is changed (up or down)






6. The cost of merchandise that was sold (including the method that was used to determine cost)






7. Total Expenses/ Net Sales






8. Debts owned by a retailer that require payment over an extended period of time (Fixtures - equipment - and property)






9. Also referred to as the income or operating statement. 5 Basic Elements: Net Sales - Cost of Goods sold - Gross Margin - Operating Expenses - Net profit






10. Net Profit After Taxes/ Total Assets






11. Gross margin less operating expenses=NP before taxes. Deducting taxes=NP after taxes






12. Dollar markup ($)/ retail price ($)






13. In the Cost Method. Merchandise most recently purchased is assumed to have been sold first. Therefore - the ending inventory reflects the items in stock for the longest period of time. Produces lowest ending inventory value and highest cost of goods






14. Statistical forecasting tool that helps retailers to predict how apparel markdowns may affect the bottom-line business and objectives before the markdowns are implemented.






15. The prices from lowest to highest that are carried within a merchandise category






16. Assesses the retailers ability to realize adequate return on the money that is invested by the retail owner.






17. Reduction in price of an item - if that item is sold - the result is a lower monetary intake for that item






18. The awareness of the consumer to what they perceive to be the window of cost within which they will buy a particular product or service






19. Cost Price/ (100%-markup %)






20. Net dollar markdown/ net dollar selling price






21. Financial debts incurred by a retailer






22. When new styles or models come out every year - thus forcing the obsolescence of the previous year's model






23. The value of this calculation is that consumers can understand the price reduction when the retailer is promoting this merchandise.






24. Usually lower than original - but held for longer period






25. Costs involved in running the business






26. Price Lining - price zones - price ranges






27. (1) Response of consumers and (2) cost of receiving - handling - and placing merchandise for sale.






28. Basic premise is to increase profits through more sales without an increase in inventory. Inventory is expressed in cost terms rather than cost percent - because it is related to investment dollars in gross margin - it should be expressed in cost num






29. All of the capital used in operating the store - whether provided by the owners or creditors (vendors - banks)






30. The energizing force that fuels and sustains our economic system






31. Sales less cost of goods sold






32. Dollar markup ($)/ cost price ($)






33. Promotional markdown that involves selling at or near cost for promotional purposes






34. First price or Manufacturers suggestet Retal Price (MSRP)






35. Original Retail price- markdown selling price






36. Inventory Valuation Method that combines taking inventory at retail prices and adjusting the cost value to reflect current retail value. 5 Steps Involved.






37. Net Profit After Taxes/ Net Worth






38. Total Assets/ Net Worth






39. Liabilities+ Owner's equity or net worth






40. In Cost Method. Merchandise sold during a time period is assumed to be sold in the order the merchandise was received. Merchandise on hand for the longest period of time is sold first. Therefore - the ending inventory reflects the items in stock for






41. Strategy employed by retailers to buy and carry a predetermined number of price lines for a category of merchandise






42. Temporary price reduction for a specific period of time for the express purpose of generating store traffic and sales. Prices return to original retail price at end of sale period.






43. Having the right merchandise - at the right time - for the right price - in the right place






44. Represents the total dollar markdown as a percentage of total dollar net sales. This is typically not for an individual item.






45. 1. Determine merchandise available for sale at both cost and retail prices. 2.Calculate the cost to retail complement or percentage relationship of the cost of merchandise to the selling price. 3. Subtract markdowns taken during the period. 4. Determ






46. Buying errors - promotion errors - pricing errors - uncontrollable errors






47. Ranges of prices that appeals for a particular group of consumers






48. The retailers financial condition at a specific point in time






49. One that is just enough to move the goods






50. Cannot be readily converted to cash within one year. (Fixtures - equipment - land/buildings)







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