Merchandising Operations and Inventory Systems

What is a merchandiser?

• A business that sells merchandise to customers

• A business that buys goods from a manufacturer and sells them to retailers

• A business that buys merchandise from manufacturers or wholesalers and sells them to consumers

• A business that provides services to customers

What is the operating cycle of a merchandising business?

• The process of purchasing inventory, selling it to customers, and collecting cash from customers

• The process of purchasing inventory, selling it to customers, and paying vendors

• The process of purchasing inventory, manufacturing goods, and selling them to customers

• The process of providing services to customers and collecting payment

What is the difference between a wholesaler and a retailer?

• A wholesaler buys goods from a manufacturer and sells them to retailers, while a retailer buys merchandise from manufacturers or wholesalers and sells them to consumers

• A wholesaler buys goods from a retailer and sells them to manufacturers, while a retailer buys merchandise from manufacturers and sells them to consumers

• A wholesaler buys goods from a manufacturer and sells them to consumers, while a retailer buys merchandise from manufacturers or wholesalers and sells them to other businesses

• A wholesaler buys goods from a retailer and sells them to consumers, while a retailer buys merchandise from manufacturers or wholesalers and sells them to other businesses

What is the difference between a perpetual inventory system and a periodic inventory system?

• A perpetual inventory system keeps a running computerized record of merchandise inventory, while a periodic inventory system requires a physical count of inventory to determine inventory on hand

• A perpetual inventory system requires a physical count of inventory to determine inventory on hand, while a periodic inventory system keeps a running computerized record of merchandise inventory

• A perpetual inventory system is used by wholesalers, while a periodic inventory system is used by retailers

• A perpetual inventory system is used by retailers, while a periodic inventory system is used by wholesalers

What is a purchase discount?

• A discount that businesses offer to purchasers as an incentive for early payment

• A discount that businesses offer to purchasers as an incentive for late payment

• A discount that businesses offer to purchasers as an incentive for bulk purchases

• A discount that businesses offer to purchasers as an incentive for returning merchandise

What is the purpose of the income statement for a merchandiser?

• To report sales revenue, cost of goods sold, gross profit, and operating expenses

• To report service revenue, cost of goods sold, gross profit, and operating expenses

• To report sales revenue, cost of goods sold, net income, and operating expenses

• To report service revenue, cost of goods sold, net income, and operating expenses

What is the gross profit percentage?

• The profitability of each sales dollar above the cost of goods sold

• The profitability of each sales dollar after deducting operating expenses

• The profitability of each sales dollar after deducting all expenses

• The profitability of each sales dollar after deducting cost of goods sold and operating expenses

What is a performance obligation?

• A contractual promise with a customer to transfer a distinct good or service

• A contractual promise with a vendor to transfer a distinct good or service

• A contractual promise with a supplier to transfer a distinct good or service

• A contractual promise with an employee to transfer a distinct good or service

What is the difference between FOB shipping point and FOB destination?

• FOB shipping point means the buyer takes ownership of the goods after they leave the seller's place of business, while FOB destination means the buyer takes ownership of the goods at the delivery destination point

• FOB shipping point means the buyer takes ownership of the goods at the delivery destination point, while FOB destination means the buyer takes ownership of the goods after they leave the seller's place of business

• FOB shipping point means the seller takes ownership of the goods after they leave the buyer's place of business, while FOB destination means the seller takes ownership of the goods at the delivery destination point

• FOB shipping point means the seller takes ownership of the goods at the delivery destination point, while FOB destination means the seller takes ownership of the goods after they leave the buyer's place of business

What is the purpose of the periodic inventory system?

• To track inventory by physically counting it at the end of each period

• To track inventory by maintaining a running computerized record

• To track inventory by estimating the quantity on hand

• To track inventory by recording all purchases and sales